The crypto space, being an evolving one, is always busy with newer additions to the existing blockchains. Not only that, the ecosystem is also always working towards newer projects! With the ever-exciting space always evolving, according to research, we now have more than 12000 crypto assets!
Joining the newer projects is a new stablecoin from Coin98; known as CUSD! On Monday, September 19, 2022, the decentralized finance (DeFi) platform Coin98 rolled out its own dollar-pegged, decentralized stablecoin aiming to become a way to move value across different chains.
Since its inception, Coin98’s mission has been to work towards creating an open financial infrastructure for a multi-chain world where everyone will be able to easily access decentralized finance (DeFi) without confusing blockchain know-how. The move to introduce this new stablecoin comes as the race among DeFi protocols who are taking the path of crafting their own native stablecoins. This behavior is becoming more common as an attempt to attract users and boost liquidity on the platforms. Similar to Coin98, other well known DeFi heavy-weights Curve and Aave are reportedly working on their own stablecoin projects.
According to the Coin98 blog post, The newly introduced CUSD is a fully-backed stablecoin that aims to become a cross-chain unit of account that fulfills the demand for cross-chain liquidity in DeFi. The CUSD token brings up an ambitious, long-term mission. To achieve this, the Coin98 initiative is to build a strong foundation of use cases for CUSD within the Coin98 Ecosystem, first by centering CUSD as the default medium of exchange across all products that Coin98 Finance built. In the long run, CUSD will gradually expand into other DeFi ecosystems in the multi-chain world.
Unique Features of the CUSD Token:
The inception of CUSD will unlock a seamless unified cross-chain liquidity flow among various Coin98 products, and therefore, a true seamless cross-chain experience will be unveiled. Some of the robust features that Coin98 is adapting to for unlock the CUSD potential include:
- Native DeFi Hubs on each blockchain.
- A Native Cross-chain Bridge.
- A Multi-chain Token Launch Platform.
- A Multi-chain NFT Marketplace.
Read more on the Coin98 blog
What are stablecoins?
Stablecoins are a type of digital asset whose value is tied to the value of a currency, a commodity, or any other financial instrument. So for every stablecoin that is in circulation, a reserve of these real-world assets are maintained as collateral. This way they offer the benefit of being non-volatile in nature. They are also useful for quick payments without the need of an intermediary.
Let us understand Stablecoin with an example: Suppose you want to send Rs. 100 on a bank holiday. You may use blockchain technology for instant money transfers. But due to price fluctuations in BTC or ETH, one may receive Rs. 95 or Rs. 105. Either case is not ideal. So to deal with the mispricing caused due to volatility, one can instantly send stablecoins whose value remains constant with the added transparency of all of the data being recorded in a public blockchain ledger.