ViteX Releasing Zero-fee, Mine-able, Decentralized Stablecoin Conversion

Christy Li
Aug 26, 2020 · 3 min read

Stablecoins experienced explosive growth in the first half of 2020, attaining market cap of over USD 10Bn. Due to their very nature of stable value against fiat, many users hold them for preservation of value. Among the many stablecoins in the market, the main ones are USDT, USDC, TUSD, BUSD, and DAI. Different stablecoins are useful in different scenarios. Note that the risk of holding only one type of stablecoin is high, thanks to operator risks that cause potential depreciation or inability/inconvenience to convert to fiat. As such, users typically hold multiple kinds of stablecoins, and this creates a growing need for conversion between stablecoins.

Traditionally, stablecoin conversions can be done via fiat-intermediated transaction, or trades on centralized exchanges. These processes entail bigger risks, higher transaction fees, and low liquidity. With the development of DeFi and Open Finance, decentralized stablecoin conversion protocols will gradually replace these older channels, by removing the centralized party and facilitating more secure transactions at lower costs.

ViteX will debut its zero-fee stablecoin transfer service in the coming weeks. This service is based on ViteX, the completely decentralized exchange protocol. The service not only secures users’ digital assets, but also requires no account registration or complex KYC process.

Also, due to the nature of Vite chain’s free transactions, there will be zero fees in the exchange process. To be clear, there will be zero fees both at the exchange transaction fee level, and at the public chain level (typically understood as “gas”).

In addition, to stimulate liquidity and reduce slippage, stablecoin transactions will come with liquidity mining (aka “market-making as mining,” where limit order providers will earn VX). Market makers can therefore simultaneously arbitrage from stablecoin markets, earn additional mining rewards, and remit zero fees to the trading platform.

Initially, we will open three stablecoin pairs for zero-fee conversion — USDC/USDT, DAI/USDT, BUSD/USDT:

  • Deposit will open for USDC and DAI at 15:00 on Sept 3, 2020 (UTC+8)
  • USDC/USDT and DAI/USDT begin trading at 15:00 on Sept 4, 2020 (UTC+8)
  • Deposit for BUSD and USDT is already available. Pair BUSD/USDT is currently traded on the exchange, zero-fee conversion will available after the hard fork

As a pioneer and practitioner of the field of Open Finance, ViteX will always explore and implement features by thinking from the users’ perspective. We’re proud to release the zero-fee, mine-able, decentralized stablecoin transfer function; It will not only satisfy real needs from customers, but further enhance the DeFi ecosystem and propel the development of the blockchain industry at large.

Vite Labs

Official Medium Page for Vite, a new-generation public blockchain