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The cryptocurrency exchange Coinflex has announced the launch of a unique interest-bearing stablecoin called Flexusd. The new stablecoin is considered the first dollar-backed crypto to pay interest at the base level. In addition, the new token is built on the Ethereum blockchain and the Bitcoin Cash network using the Simple Ledger Protocol.
The digital currency trading platform Coinflex has revealed the creation of a new stablecoin token which is interesting. A stablecoin is a cryptocurrency tied to the price of a fiat currency and traditionally it is the US dollar. This allows people to hold crypto assets without exposing themselves to massive bitcoin price swings (BTC) or ethereum (ETH) markets.
The stablecoin economy has grown tremendously and today there are $ 23 billion worth of fiat-pegged digital assets. The CEO of Coinflex.com Mark Lamb told his Twitter followers about the new stablecoin token on Wednesday.
“We are proud to have launched the first interest-bearing stablecoin,” Lamb tweeted. “Flexusd pays the proceeds while you own the private keys. Currently, it pays 8% interest and earns the returns from our repo market powering our deliverable perps. The only sustainable return is from leverage, ”added Coinflex’s CEO.
The website of the new token Description explains that Flexusd is a stable, multi-yielding coin that works in a non-custodial way. Traditionally, stablecoins give some of the highest returns in the market, but users have to use them as collateral or deposit them in a centralized exchange.
“Flexusd and all Flex assets earn interest, even if they’re just in a wallet, defi app, exchange or margin account,” notes the web portal. “This enables what we call ‘return on return,’ that is, using native yield-bearing Flex Assets to get additional returns from these different crypto sources.”
Coinflex indicates that the token will be made available through the Ethereum and Bitcoin Cash blockchain during the initial launch. The exchange uses the Simple ledger protocol (SLP) framework for the coins on the BCH side. Coinflex plans to distribute Flexusd across a variety of chains in the future, including networks such as Polkadot, Tron and EOS. The stablecoin issued by Coinflex will also be available through various decentralized funding platforms (defi).
The yield on yield scheme not only benefits Flexusd stablecoin owners, as Coinflex indicates that the concept works with Flex-packaged assets such as Flexbtc, Flexeth and Flexlink. Accordingly, Coinflex says the exchange will conduct three repo auctions per day, and users of Flex assets will receive a “pro-rata share of the interest earned by users borrowing assets underlying the flexible assets.”
There are a number on social media and crypto-related forums BCH proponents raved about the interest-bearing stablecoin. “This is huge,” the entire node Bitcoin Cash development team Bitcoin Unlimited tweeted.
On Reddit, a Bitcoin Cash supporter asked what the difference was between Flexusd and tether and whether or not the new tokens were supported and monitored. The CEO of Coinflex responded to the question, saying, “It is always fully supported. Flexusd is lending the underlying USDC to Coinflex’s repo market. “
“There will be audits, in fact we open the code of the repo lending bot and also the read-only API keys,” concluded Lamb. “This way you can always see all the scales and check exactly what is happening under the hood. The difference versus USDT is USDT pays 0% interest and Flexusd pays interest. “
What do you think of the stablecoin Flexusd and the concept of earning interest on the base tier? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Coinflex,
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