Decentralized finance (DeFi) platform Coin98 has rolled out its own dollar-pegged, decentralized stablecoin aiming to become a way to move value across different chains, Coin98 announced on Monday in a statement.
- The move comes as the race among DeFi protocols to craft their own native stablecoins is heating up in an attempt to attract users and boost liquidity on the platforms. DeFi heavy-weights Curve and Aave are reportedly working on their own stablecoin projects.
- Stablecoins are a subset of cryptocurrencies that maintain their price stable to another asset, usually pegged to the U.S. dollar. They serve as an important bridge between government-issued (fiat) currencies and crypto assets, and have seen tremendous growth in the last few years, now making up $152 billion of the $1 trillion crypto asset class.
- Coin98 Dollar, also called CUSD, started trading Monday on three blockchains, namely Ethereum, BNB Smart Chain and Solana. “In the long run, CUSD will gradually expand into other DeFi ecosystems in the multi-chain world,” according to a Coin98 post.
- CUSD is a fully collateralized stablecoin that supports its value through Circle USDC and Binance USD held in a Coin98 reserve. Users can mint and redeem CUSD at a 1:1 ratio by depositing USDC or BUSD. At the initial phase, the CUSD’s supply will be capped at $50 million.
- The stablecoin’s smart contract code has been audited by security firms Inspex, PeckShield and SlowMist, according to a blog post.