The Impossible Trinity of stablecoins and how Slash provides the easier payments through stablecoins
Inflation in the U.S. is accelerating, with the Consumer Price Index (CPI) rising to 9.1% for the first time in 40 years.
It is believed that the prices of risky assets such as crypto assets will continue to be unstable due to inflation, so more and more investors are choosing to hold stablecoins.
Recently, U.S. Treasury Secretary Janet Yellen arrived in Japan to give her views on the development of stablecoin regulation in 2022.
Financial authorities in various countries were shocked by the “UST plunge” and are trying to regulate stablecoins.
This time, we will analyze the development of stablecoins in the cryptocurrency market and the possibility of using “Slash Web3 payments” in it.
Latest Projects of “stablecoin”
①Stablecoin with 1:1 anchoring to GBP (GBPT)
Blackfridge, a financial technology company, announced the launch of the GBP-linked stablecoin “GBPT (ERC-20)”.
GBPT is anchored 1:1 to the British Pound and its reserves are controlled by a financial institution of the Isle of Man Financial Services Authority and audited and reported on monthly by global accounting firm KPMG.
With the surge in demand for stablecoins, there has been significant interest in UK pound-pegged stablecoin offerings, which will be swap/trade in the future on CEX and DEX such as Gate.io, Bittrex Global and Uniswap.
In the UK, the government is conducting a CBDC use case/risk survey and the Bank of England is exploring ways to deal with the digitization of currencies, including the creation of a unit dedicated to investigating digital currencies.
As a result, it is expected that more people will have access to DeFi with “GBPT” as an entry point, and the cryptocurrency market is expected to expand as the number of entrants increases ✌️
②UXD
“UXD” is a stablecoin issued by the Delta Neutral Position mechanism by using the way called PERP.
The Delta-neutral mechanism is a risk-hedging method of stabilizing investments by holding the same amount of cash as the short position, through which “UXD” is guaranteed “price stability”. Thus, it acts as a stablecoin.
・Use BTC as reserve funds
・Short BTC perpetual contracts（PerpetualSwap）
UXD is issued by creating the above-mentioned positions on Solana’s derivatives exchange “Mango Markets”.
The Impossible Trinity of stablecoins is:
Price stability
Capital Efficient
Decentralized
(For example, the problem with USDT and USDC in terms of “decentralization” is that they are run by a centralized company.)
In addition, the “price stability” of stablecoins has been recognized as a major issue due to UST volatility, and in the case of asset-backed stablecoins, management of asset reserves, etc., is critical to deal with volatility.
At the moment, it can be said that UXD is not as well known as USDT and USDC mainstream stablecoins, but it is expected to have greater utility in the future ✌️
③AAVE
The DeFi protocol “Aave” today proposed to DAO the introduction of a USD-pegged multi-collateralized stablecoin “GHO” and the integration of a stablecoin that has grown to around $150 billion into the ecosystem, in anticipation of creating a more diverse DeFi marketplace.
With the launch of “GHO”, it is expected that the competitiveness of Aave Protocol stablecoin lending will increase and users will have more options. A “GHO” is created when a user provides crypto assets at a specific collateral rate, and the GHO protocol destroys the user’s GHO when the user repays (liquidates) the borrowed position.
As shown below:
・RWAs
・Delta Neutral Position
TIps:
So far, stablecoins pegged to the US dollar have been common, but in the future, various market forms such as Delta Neutral Position or asset-backed types are expected to emerge.
We are developing “Slash Web3 Payment” to popularize crypto-asset payments.
(1) Support for EVM-based web-based crypto assets
(2) User payments will be automatically transferred into stable coins to merchant accounts
(3) Setup in only7 steps
As stablecoins become more popular, expect more opportunities to use crypto assets as a payment method in the future ✌️
Chcek the Slash Web3 Payment test network：
Reference Articles
https://www.poundtoken.io/#/home
https://financefeeds.com/kpmg-to-audit-blackfridges-sterling-pegged-stablecoin/
https://dailycoin.com/blackfridge-launches-poundtoken-the-first-regulated-british-pound-stablecoin/
https://multicoin.capital/2021/09/02/solving-the-stablecoin-trilemma/
