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Cryptocurrency exchange Coinflex has announced the launch of a unique interest-bearing stablecoin called Flexusd. The new stablecoin is considered to be the first dollar-backed cryptocurrency to pay interest at the base level. Furthermore, the new token is built on the Ethereum blockchain and also on the Bitcoin Cash network using the Simple Ledger protocol.
Coinflex digital currency trading platform has revealed the creation of a new stablecoin token that brings interest. A stablecoin is a cryptocurrency linked to the price of a fiat currency and traditionally is the US dollar. This allows people to hold crypto assets without exposing themselves to huge price fluctuations found in the bitcoin (BTC) or ethereum (ETH) markets.
The stablecoin economy has grown tremendously and today there are $ 23 billion worth of digital assets tied to fiat. Coinflex.com CEO Mark Lamb he told his Twitter followers about the new stablecoin token on Wednesday.
“We are proud to have launched the first fruiting stablecoin,” Lamb tweeted. “Flexusd pays the return while you hold the private keys. Currently paying 8% interest, it earns returns from our repo market that feeds our deliverable perps. The only sustainable return comes from leverage, ”added Coinflex’s CEO.
The description of the new token website explains that Flexusd is a multi-yield stablecoin that operates on an unsecured basis. Traditionally, stablecoins have some of the highest returns on the market, but users have to use them as collateral or deposit them on a centralized exchange.
“Flexusd and all Flex assets earn interest even when they are simply sitting in a wallet, a defi app, an exchange or a margin account,” notes the web portal. “This allows for what we call ‘return on return’, which is the native use of Flex Assets that bear the return to earn extra return from these various cryptocurrency sources.”
Coinflex explains that the token will be made available via the Ethereum and Bitcoin Cash blockchain during the initial launch. The exchange is leveraging the Simple Ledger Protocol (SLP) framework for coins on the BCH side. In the future, Coinflex plans to roll out Flexusd across a myriad of chains, including networks such as Polkadot, Tron and EOS. The stablecoin issued by Coinflex will also be available through a variety of decentralized finance platforms (defi).
The “return to return” scheme not only benefits Flexusd stablecoin owners, as Coinflex explains that the concept works with Flex packaged assets such as Flexbtc, Flexeth and Flexlink. As a result, Coinflex says the exchange will conduct three repo auctions per day and users of Flex assets will receive a “proportionate share of any interest earned by users who borrow assets that underpin the flexible assets.”
On social media and cryptocurrency forums, numerous supporters of BCH were enthusiastic about the fruitful stablecoin. “This is huge,” the Bitcoin Cash development team at 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 verified. Coinflex CEO answered the question and said: “He is always fully supported. Flexusd lends the underlying USDC in Coinflex’s repo market. “
“There will be audits, in fact, we are making the repo loan bot code open source and also the read-only API keys,” concluded Lamb. “So you will be able to see all the balances at all times and check exactly what is going on under the hood. The difference to USDT is that USDT pays 0% interest and Flexusd pays interest. “
What do you think of the Flexusd stablecoin and the concept of earning interest at the entry level? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Coinflex,
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