Cross Chain Stablecoin — IOST iUSD Launching Next Week!
Lack of Stablecoin Solutions Outside of Ethereum Network Creates a Barrier to Growth
Currently, most USD pegged stablecoins, including PAX and GUSD, are based on the ERC-20 Token from Ethereum. This becomes a barrier for many Dapps built on other networks, as these Dapps will not be able to execute transactions with stable transfers of value.
iUSD — The Solution For Stable Transfers of Value in the IOST Ecosystem and Across Chains
Dapps and users in the IOST ecosystem will face similar obstacles, if there are no stablecoins to help execute transactions with low exchange rate fluctuations. The iUSD, a stablecoin solution which will be officially launched next week on IOST, is the solution to this problem.
IOST iUSD is a cross-chain stablecoin issued on the IOST blockchain. Blockchain applications built on the IOST ecosystem can use stablecoins to execute payment transfers with low exchange rate fluctuations. The iUSD, is pegged to PAX, GUSD, TrueUSD, CircleUSD and DAI and will be officially released next week.
The iUSD stablecoin is launched by Rate3 Network, and can help to seamlessly transfer digital assets between the IOST network and other blockchians. Non-IOST digital assets (such as PAX, GUSD) can be stored on the IOST blockchain. Conversely, assets on the IOST blockchain can also be transferred onto other blockchains.
How To Transfer Digital Assets Across Chains using Rate3 Swap Gateway
The steps to transfer digital assets across chains are as follow:
- Users send non-IOST assets (such as PAX which is an ERC-20 Token) to the Rate3 Swap Gateway.
- PAX will be moved to the wallet address of its original blockchain (Ethereum in this case) — which will be disclosed with full transparency, and viewable on the Ethereum blockchain.
- The value of the assets in this Ethereum address will back the value of newly issued iUSD tokens on the IOST blockchain on a 1:1 ratio.
- When the user wishes to move iUSD out of IOST and back onto Ethereum, he/she sends iUSD to a specified IOST address designated by Rate3’s Cross-Chain Swap service.
- The equivalent PAX will then be sent back to the user’s Ethereum wallet address.
- Through Rate3’s gateway service, users can exchange, claim, or deposit digital assets in IOST. This service will be extended to support other stablecoins and/or digital currencies as community demand grows.
We are excited at the impending launch of iUSD and believe that the launch of the cross-chain stablecoin iUSD will attract more DApp developers to IOST, as it stabilizes value transfer within the IOST ecosystem and help Dapp teams minimize their exposure to volatile market prices.