eGold Backed Stable Coins Come To The Elrond Network Via OIN Finance
One of the biggest catalysts for the surge of DeFi has been the introduction of stable coins. They are tokens issued on the blockchain whose value is pegged to a fiat currency such as the USD, offering a recognizable denomination for financial transactions and a haven against volatility.
There are many stable coin issuance models, such as backed by bank deposits, managed through an algorithmic function, or collateralized by a cryptocurrency. Out of all the aforementioned models, crypto collateralized stable coins offer the most trust and transparency, thanks to the public nature of the underlying smart contracts and oracles.
In preparation for the Maiar Exchange launch, we are excited to announce that we are working with OIN Finance to issue the first EGLD backed stable coin on the Elrond mainnet!
“The eGold currency has been conceived to be a store of value with powerful utility in the Elrond ecosystem. Its use as collateral for stable coins allows holders to access liquidity and engage in additional DeFi opportunities which will further drive ecosystem growth.” said Beniamin Mincu, Elrond Network CEO.
OIN Finance have been a member of the Elrond ecosystem for a while, and in the meantime, they have evolved to offer crypto collateralized stable coin issuance and staking derivatives via OINDAO, as well as a DEX for swapping OINDAO staking derivatives and stablecoins.
Our collaboration will focus on deploying the OINDAO framework on the Elrond Network, to be used in issuing an eGold backed USD-pegged stable coin. In addition, a portion of the OIN token supply will be minted on our mainnet in the ESDT format. Both tokens can be used to pursue DeFi opportunities on the Maiar Exchange.
“We are excited to support the growth of the Elrond DeFi landscape through the issuance of a crypto-backed stable coin powered by OINDAO. Its store of value tokenomics make eGold a great asset for collateralization by long term supporters looking to leverage their holdings in the DeFi ecosystem.” said Amo Huang, OIN Finance Tech Lead.
The collaboration is important for the Elrond ecosystem because it brings an eGold-backed stable coin into our DeFi landscape, which will allow more flexibility for eGold holders looking to engage with the Maiar Exchange and other products that will be deployed on our mainnet.
Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
About OIN FINANCE
OIN is a decentralized stablecoin issuance and trading platform. While MakerDao allows only mainstream assets to be used as collateral to issue DAI, OINDAO allows projects, large or small, to issue their own brand labelled synthetic assets that are collateralized by their own coins; in essence, any projects can mint their own stablecoins to participate in the greater DeFi ecosystem. Having commenced with Ethereum, and gradually expanding to other popular ecosystems such as Polkadot, Avalanche, Binance Smart Chain and most recently Elrond, OIN’s aim is to become a one-stop shop for cross-chain stablecoin issuance, trading, and implementation.