Introducing the OIN Stablecoin Coalition: A United Stable Future
We’ve revealed that we have a new classification of partners — the Constellation Partners, but what exactly does it mean? How does this lead to a Stablecoin Coalition, and what will we do?
We’re excited to bring you a new initiative from us and our amazing partners, one that will bring the whole space theme, rebrand, the V3 and our Constellation Partners all into a clear perspective.
Stablecoins have soared in popularity over the past year, representing a vital bridge between decentralized finance (DeFi) and growing institutional demand. To date, over $120 billion of crypto-dollars have been issued, helping to power a thriving parallel financial system whose permissionless applications prove that crypto is about more than just, well, crypto.
Until now, the stablecoin arms race has involved a plethora of projects underpinned by fiat currencies competing for ‘turf’ on the blockchain. Immune to the savage volatility the crypto market is known for, these stables have proliferated across countless networks and facilitated a never-ending flow of transactions on DeFi applications.
Which is all well and good. However, out of the already established $120 bn market cap of stablecoins, ~70% are issued on Ethereum. While early stage stablecoin adoption has benefited substantially from the large Ethereum communities, its growth has also been hindered by challenges of that inherent to the Ethereum network, such as congestions and high gas fees. The stablecoin market, like any other, must evolve in order to drive adoption — not just among retail and institutional investors but businesses and charities keen to embrace crypto in their day-to-day operations; and customers who can benefit from the inherent advantages of fiat-pegged digital assets (like cheap cross-border transfers and ultra-quick settlement).
At the same time, we have witnessed the proliferation of several competing layer-1 public blockchains, chipping away at Ethereum’s market share. These are young communities that promise better user experience than Ethereum, incubating each respective ecosystem of projects, with strong demand for a fast lane to build a well-rounded DeFi ecosystem.
A New Frontier for DeFi
Which is why we are creating a groundbreaking Stablecoin Coalition in partnership with several major layer-one blockchain networks including NEAR. The goal? To build the nuts-and-bolts infrastructure required to onboard the next generation of DeFi users. We’re not talking about a few hundred thousand; we’re talking about tens of millions.
A robust, cross-platform Stablecoin Coalition is exactly what crypto is crying out for at this juncture, when more eyeballs are on DeFi than ever before. By joining forces with leading layer-one public chains and uniting disparate communities under one umbrella, we will level up DeFi by bringing greater utility to the booming stablecoin market.
The true value of the Stablecoin Coalition is seen from three factors stemming from the Constellation Partnerships:
1. Joint forces of credibility and adoption
One of the key challenges for smaller stablecoin projects to take off is the size of adoption, which is an inherent problem in younger and smaller public chain projects. The Stablecoin Coalition enables projects to tackle the zero-to-one challenge in unity, forming joint forces of community, governance, credibility, adoption, as well as joint competitiveness against larger more-established DeFi ecosystems.
In addition, the Stablecoin Coalition also creates more leverage and bargaining power when exploring integration into existing traditional use cases. E.g. online Point of Sale service providers will have an easier time accepting the coalition members into their systems.
2. A turnkey stablecoin issuance solution
The OINDAO protocol aims to become the go-to turnkey stablecoin issuance solution for the blockchain world, and become a foundational piece within the bigger DeFi infrastructure that enables easy onboarding of businesses and users alike. OINDAO will act as a catalyst for the advancement of DeFi ecosystems for younger layer-1 projects — conversely, allowing easy-access to specific protocol’s ecosystems (e.g. access into NEAR ecosystem projects) from traditional businesses that want to plug in using stablecoins, while providing access to these DeFi functions and businesses to the users of said ecosystems.
3. A possible avenue to a future of fully cross-chain interchangeable stablecoins
While this is dependant on the needs and the commercial arrangement of the coalition members and business applications, OINDAO could become an enabler of fully cross-chain interchangeable stablecoins. This strengthens the inclusiveness of each partners’ community and creates substantial synergies, paving the way for the integration of DeFi and traditional institutions.
Although $120 billion is an eye-catching figure, stablecoins have until now only scratched the surface in terms of adoption. With inbuilt volatility resistance, these assets are tailor-made for transactions, whether by individual users or businesses. Our multi-chain Stablecoin Coalition will establish the necessary foundations that allow businesses to enter the cryptosphere and utilize asset-backed, on-chain tokens, those that enable them to better manage their expenses while protecting their cash flow.[A1] If the crypto industry embraces stablecoins more widely, rather than having USDT as a cash reserve for exchange accounts, it will certainly pave the way for businesses to enter.
Our newly-established Stablecoin Coalition will actively explore ways to promote the growing stablecoin economy and its innumerable ways to help further the blockchain industry itself. Until now, the industry has focused largely on the evolution of tech, constructing business models that engender functioning, long-lasting products that serve tangible purposes. Now is the time for the industry to establish an infrastructure that allows proper integration with the traditional world, and not just copy and paste OR fight to replace their ways. Why struggle to fight or replicate them, when the most value can be extracted from the synergies of the two worlds?
In the coming weeks and months, we will endeavor through our novel Stablecoin Coalition to explore fresh use cases, synergies, and value propositions within decentralized finance: transactions, governance, lending, and much more besides. With the Stablecoin Coalition becoming a household name for those in DeFi, the businesses who have been taking even a cursory look into integrating crypto will know to reach out to us — and we will be their gateway into DeFi.
It’s go-time.
Stay tuned for more on which partner will be the first to star in the Constellation Partnership Series, what that entails, and more!
