> ## Documentation Index
> Fetch the complete documentation index at: https://docs.iron.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# PYUSDx

> PYUSDx is a DeFi-oriented issuance platform from MoonPay and M0, built with PayPal. Launch a stablecoin backed 1:1 by PYUSD, with programmable rewards and shared liquidity.

PYUSDx is a DeFi-oriented issuance platform built by MoonPay and M0 in partnership with PayPal. Every PYUSDx token is backed 1:1 by PayPal USD (PYUSD), and rewards are generated from the PYUSD reserves. You integrate through M0's protocol to launch your own stablecoin backed by PYUSDx, with coverage for users outside the US.

<CardGroup cols={3}>
  <Card title="M0" icon="layer-group">
    The infrastructure layer, built by the original architects of USDC and DAI. The network runs 15+ stablecoins across 20+ chains, with \$3B+ in on-chain flows.
  </Card>

  <Card title="MoonPay" icon="shield-check">
    A regulated crypto payments company with 30M+ users and global on and off-ramp coverage. The licensing and operations layer behind PYUSDx.
  </Card>

  <Card title="PayPal" icon="building-columns">
    One of the world's largest payments networks, with 400M+ users across PayPal and Venmo. The primary distributor of PYUSD.
  </Card>
</CardGroup>

## Why build on PYUSDx

<CardGroup cols={2}>
  <Card title="Contract-level ownership" icon="file-signature">
    You own the branding, fee logic, distribution, and rewards allocation for the stablecoin you build on top of PYUSDx.
  </Card>

  <Card title="Programmable rewards" icon="arrow-trend-up">
    Rewards from PYUSD reserves stream on-chain to your stablecoin. You control who receives them, how they split, and on what cadence.
  </Card>

  <Card title="Minting and redemption" icon="arrows-rotate">
    MoonPay handles 1:1 minting and redemption against PYUSD, giving you and your partners a proven way to mint and redeem at scale.
  </Card>

  <Card title="Shared liquidity" icon="droplet">
    Convert 1:1 on-chain between your stablecoin, PYUSD, and every other token built on PYUSDx.
  </Card>
</CardGroup>

## How minting works

When a user deposits PYUSD to mint PYUSDx, Iron automatically:

1. Detects the incoming PYUSD deposit on-chain
2. Allocates PYUSD to the PYUSDx reserve account
3. Mints equivalent PYUSDx tokens on-chain
4. Delivers PYUSDx tokens to the user's specified wallet address

Every token is backed at least 1:1 by equivalent PYUSD value in reserves.

## How redeeming works

When a user redeems PYUSDx for PYUSD, Iron automatically:

1. Detects the incoming PYUSDx deposit on-chain
2. Burns the PYUSDx tokens, removing them from circulation
3. Releases equivalent PYUSD value from reserve accounts
4. Delivers PYUSD tokens to the user's specified wallet address

<Note>
  Unlike fiat-backed issuance, PYUSDx mints and redeems against PYUSD, so the flow is on-chain crypto-to-crypto end to end. You can also convert 1:1 on-chain between PYUSDx, PYUSD, and any other token built on PYUSDx.
</Note>