Following UST Crash, Defi Project Plans to Launch ‘Soft-Pegged Stablecoin’ Built on Terra – Bitcoin News
After the Terra stablecoin demise last May, the Terra blockchain ecosystem has another stablecoin concept called “Solid”. The stablecoin Solid and its whitepaper were unveiled by Capapult Finance, a decentralized finance (defi) project, calling the idea a “soft-pegged stablecoin” built on Terra.
Terra Blockchain Ecosystem Sees New Stablecoin Called Solid
About five months ago, the crypto community went through dark days when the stablecoin terrausd (UST), now called terraclassicusd (USTC), was de-pegged from $1 parity. Today, USTC changed ownership at $0.03 per unit, and the defunct Terra blockchain ecosystem migrated to a new network called the Phoenix blockchain.
With the launch of the Terra 2.0 network, the crypto community was introduced to a new native crypto called terra (LUNA) 2.0. Following the stablecoin de-pegging incident that wreaked havoc across the crypto economy, a defi project called Capapult Finance launched a new “soft-pegged stablecoin” built on the Terra network called “Solid”. It says it plans to launch. The stablecoin concept was revealed in a white paper titled “Solid, a Soft-Pegged Stablecoin on Terra”.
The project white paper describes Solid as “an over-collateralized, fully decentralized, soft-pegged stablecoin on Terra.” Unlike his original Terra blockchain whitepaper co-authored by Do Kwon, the author of the Solid whitepaper is represented by his six alphanumeric characters in two addresses — “0x7183, 3A2k4j”.
According to the white paper’s authors, the white paper, published on October 19, 2022, emphasizes the need for stable assets in the DeFi world, which fiat-backed stablecoins do not. They say they can’t. “Fiat-backed stablecoins are not under the control of their owners, as demonstrated by the Tornado Cash ban,” the white paper states. The stablecoin paper hosted on his website at Capapult Finance adds:
Therefore, in order to make blockchain technology more popular, we need assets with minimal volatility and as decentralized as possible. It is becoming clear by the day that decentralized money requires decentralized stablecoins.
According to the paper, Solid was created using a Collateralized Debt Position (CDP) scheme similar to Makerdao, where users deposit interest-bearing collateral and borrow stablecoins. The mechanism works in tandem with Capapult Finance’s governance token, CAPA, and the project claims to “bring integrity and trust to Web3 and join us in our journey to a fully decentralized ecosystem.” increase.
Solidus or Solid claims to offer low volatility and stability via interest earning collateral held in the Capapult protocol. As far as the Capapult protocol website goes, the site says that the application is “coming soon.” At the time of writing, the value of the entire stablecoin economy is $146.44 billion, with the top two stablecoins (USDT and USDC) being fiat-backed crypto assets. Two projects within the stablecoin economy leveraging the CDP method or overcollateralization scheme include Makerdao’s DAI and Tron’s USDD.
It is worth noting that many crypto supporters believe that the start of a harsh crypto winter was accelerated by the demise of Terra. Some of the indictments directed at Terraform Labs executives like Do Kwon and failed projects like defi lending platform Anchor further undermined the community’s trust in the Terra ecosystem.
Capapult Finance’s website promises that the project will bring “honesty and trust to Web3”, but the cryptocurrency community has failed to develop stablecoins built on fragmented blockchain ecosystems like Terra. It would be interesting to see if you trust .
What do you think of the idea of a soft peg stablecoin that defi project Capapult Finance plans to launch? Let us know what you think about this in the comments section below.
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Following UST Crash, Defi Project Plans to Launch ‘Soft-Pegged Stablecoin’ Built on Terra – Bitcoin News
Source link Following UST Crash, Defi Project Plans to Launch ‘Soft-Pegged Stablecoin’ Built on Terra – Bitcoin News
