Why Stablecoins Are Essential For The Cryptocurrency Ecosystem?

While volatility is nice when you’re looking for an investment and can give you an indication of the risk-reward ratio, it’s exactly the opposite of what you would look for when it comes to building a financial ecosystem. Any healthy financial system is totally dependent on the stability of its currency.

The cryptocurrency world is no different. Known for its volatility, this world started by attracting early adopters, dreamers and investors, but as time passed, it needed some stability to provide crypto traders with an offramp during times of negative volatility and to enable the widespread integration with decentralized finance (DeFi) platforms.

By providing a way to stabilize the value of cryptocurrency, stablecoins are playing a key role in creating a new financial eco-system, one that can cater to more people, enhance the existing capabilities and bring crypto closer to the “real” traditional world.

Stablecoins are here to stay

Let us explore why stablecoins are so important and discuss some of the key factors that have led to their success.

Stabelcoins 2.0 (AKA Blindex ;)

Here’s the thing: whenever someone mention stablecoins (in plural) it feels like crypto land is full of lots of different currencies, but in fact, most of the stablecoins are just a variation of a USD-pegged token (different chains, different stabilizing mechanisms, but same old USD).

If we really want this market to become mainstream and cater for a global population, we need to make sure everyone can get in and out of a trade using their own local currency.

This is where Blindex comes in. Blindex is building the first-of-its-kind multicurrency fractional-algorithmic stablecoin platform. Driven from the cutting-edge work done by Frax, Blindex stablecoins are partially backed by collateral and the remaining portion is stabilized algorithmically.

Beyond that, Blindex stablecoins are collateralized by BTC & ETH which is adding more decentralization to the mix. And on top of that, the focus of the platform is on creating a multicurrency system that also has high capital efficiency.

Blindex stablecoins are designed to be a new form of money, that is more stable and better suited for payments & commerce than any other cryptocurrency. We have big plans for making the crypto world more stable, but we’re taking it one block at a time.

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