Coin98 launches CUSD – the decentralized cross-chain stablecoin

    20 Sep 2022
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    DeFi product builder Coin98 Labs is rolling out the Coin98 Dollar (CUSD), the fully collateralized decentralized stablecoin for the Coin98 cross-chain ecosystem. Coin98 sees CUSD as the default exchange unit across all Coin98 Finance products, with distant plans to gradually expand it into other DeFi ecosystems.

    As the world of multi-chain expands, it significantly drives up the demand for moving assets among different chains. As a result, the major issue of fragmented liquidity arises. The potentially possible solution to solve it is to build a cross-chain liquidity network. 

    To effectively tackle the issue of fragmented liquidity, the Coin98 team aims to create a unit of account that measures the value of all the cross-chain liquidity pools in the ecosystem and rolls out the next building block in the ecosystem – the Coin98 Dollar, also titled as CUSD.

    According to the official blog post on Sept. 19, CUSD is a fully-backed stablecoin that aims to become a cross-chain unit of account that fulfills the demand for cross-chain liquidity in DeFi.

    The Coin98 team plans to center CUSD as the default medium of exchange across all Coin98 Finance products. Among the distant plans, CUSD will gradually expand into other DeFi ecosystems in the multi-chain world.

    The team describes CUSD as a decentralized stablecoin, which is fully collateralized by assets in reserve. To convert to 1 CUSD, a total of $1 worth of the collateralized assets must be sent into the CUSD Reserve smart contract. In particular, in the initial phase, the collateral ratio to convert to 1 CUSD will be $1 worth of fiat-backed stablecoins – BUSD (on BNB Chain) and USDC (on Solana and Ethereum).

    As per Coin98, CUSD is fully backed by all the supported stablecoin assets that were sent to the CUSD Reserve smart contract. All backing assets are maintained in the contract to ensure that all users can redeem them at any time, the team said.

    Moreover, Coin98 claims that converting fees from other stablecoins into CUSD will be free, with a 0.5% fee is initially incurred for each redeeming transaction and can be adjusted later regarding market conditions.

    Coin98 Labs is a DeFi product builder focusing on creating and developing an ecosystem of DeFi protocols, Web3 applications, and NFTs on multiple blockchains. The Coin98 universe is now consolidating Coin98 Super App, Coin98 Exchange, Coin98 SpaceGate (cross-chain bridge), Saros Finance (a DeFi Super-Network on Solana), among others.

    Sourcehttps://blog.coin98.com/introducing-cusd/

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