Following the demise of the Terra stablecoin in May of last year, the Terra blockchain ecosystem is currently working on the Solid stablecoin. It is a soft-linked stable token on Terra.
The report was published for the stablecoin USTC as well as the stablecoin Solid itself. The stable currencies Terrausd (UST) and TerraClassic crossed $1 parity and entered a dark period about five months ago. The Phoenix blockchain has taken over the ecosystem of the destabilized Terra system, where USTC is yet exchanged for only three cents per unit. The Terra 2.0 network and the controversial stablecoin Capapult Finance were introduced to the cryptocurrency community.
The New Stablecoin
A new “soft-linked” stablecoin called Solid that was based on the Terra network was recently announced. It is a highly secure, entirely redistributed token on Terra. Unlike the original Terra blockchain white paper, the authors of the new one Solid could be denoted by the six-digit characters. Do Kwon was a co-author on that paper.
The white paper’s writers stress the importance of stable tokens in the de-fi sphere and contend that fiat-supported stable tokens fall behind this standard. According to the paper and Capapult Finance’s website, stable tokens are not controlled by their owners, as demonstrated by the ban on Tornado Cash.
The Benefits for Customers
Accordingly, in order for blockchain technology to gain popularity, it must be as decentralized and volatile-free as the assets allow. The decentralized currency system calls for redistributed stable coins, which is becoming more and more obvious every day. In accordance with the paper, Solid is going to be developed on a CDP scheme resembling Makerdao, where clients will store their money and make trading deals.
The project vows to bring honesty and trust to Web3. This system will operate in tandem with Capapult Finance’s CAPA token management system. Solidus or Solid asserts to offer the least amount of volatility and stability thanks to the interest backing stored in the Capapult protocol. Requests will be accessible soon, according to the website. The market for stable coins is estimated to be worth $146.44 billion. The top stable tokens are electronic items backed by fiat currency.