The Fantom project has announced the launch of its own stablecoin USDB with high-yield liquidity pools as collateral. The issuer will be Balance, an entity comprising some members of FantomDAO.
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-The $FHM Protocol and $USDB stablecoin are united under a new entity, called Balance, which is comprised of the original @FantohmDAO team and operates to generate business revenue for both FHM and USDB.-The USDB minter is now live.
— USDB (@USDB_) March 29, 2022
The tokenomics envisage burning FantOHM (FHM) to mint USDB, and the reverse process to mint FHM backed by assets in the Fantom treasury.
The developers announced farming via the Liquid Driver protocol and providing liquidity in the Beethoven X project. A staking mechanism is also anticipated, with minimising impermanent loss.
The developers will launch the TradFi Bonds project, which will enable yields of 21%–32.5% per year in USDB using the DAI stablecoin.
Fantom users will be able to maintain USDB’s peg at $1 by exploiting arbitrage opportunities through participation in pools.
The developers plan to add lending platforms to the ecosystem, with material incentives for developers planned.
On the Fantom network has been deployed the lending DeFi project Aave.
Earlier, the Fantom ecosystem rose to third place by total value locked, behind only Ethereum and Terra.
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