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Another New Stablecoin? This Blockchain Will Compete With Terra, Near

After Tron and NEAR Protocol, IOST has now joined other crypto platforms to delve into the algorithmic stablecoin space.

Published by

Varinder Singh

Published 06 May, 2022 | 11:54:29 AM UTC

Another New Stablecoin? This Blockchain Will Compete With Terra, Near

After Tron and NEAR Protocol announced decentralized algorithmic stablecoin plans, IOST has now joined other crypto platforms to dive into the algorithmic stablecoin space.

The success of Terra’s UST stablecoin has led to new entrants exploring this important asset class in the crypto market. IOST through its stablecoin wants to further improve the benefits of decentralized algorithmic stablecoin by introducing stability and long-term added value.

IOST Plans To Launch Decentralized Algorithmic Stablecoin

Stablecoins play a vital role in the crypto ecosystem and the IOST doesn’t want to be left out to explore the opportunity, said the company in an official post on May 5.

IOST plans to solve three main problems with its algorithmic stablecoin. It aims to ensure the authenticity of oracle price feeds, control scarcity to ensure price stability and deflationary costs, and reduce short-term price volatility through a price arbitrage model.

IOST believes its strong community, technical support team, and multi-chain ecosystem provides a better foundation for decentralized stablecoin. Moreover, a stablecoin could further advance real-world use cases and strengthen the IOST ecosystem.

The IOST Foundation will support the decentralized stablecoin by ensuring funding and resources for it. This would help increase the adoption of IOST’s algorithmic stablecoin, making it a higher annualized interest rate and lower-risk stablecoin against its competitors.

The decentralized blockchain network already supports many stablecoins on the IOST blockchain, such as cross-chain stablecoin iUSD, Xigua Finance functional stablecoin XUSD, and Japanese Yen stablecoin JPYA.

Tron and NEAR Protocol Stablecoin

The success of Terra’s UST stablecoin brought two L1 blockchain entrants into the field, Tron and NEAR Protocol. In fact, NEAR Protocol’s USN stablecoin launch in April and Tron’s USDD stablecoin launch on May 5 have gained attention from the crypto industry. Also, the increased trading volume for both algorithmic stablecoins pushed prices more than 20% higher.

IOST will look to explore the opportunity of algorithmic stablecoin space to further improve its user base and adoption.

Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by

Varinder Singh

Published 06 May, 2022 | 11:54:29 AM

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