DefiDollar, an India-based firm raised nearly $1.2M during a seed round run by Accomplice, Divergence Ventures, and Standard Crypto. The objective is to create an index for trapping the dangers associated with several types of stablecoins.
DefiDollar believes customers require to diversify dangers via stablecoin aggregator. For instance, the dangers related to stablecoin such as, USDC & USDT that are fiat-backed and issued by popular entities. Contrary, cryptocurrency collateralized stablecoin such as Dai might see smart-contract dangers and plan to see slight fluctuations in value that make them less stable than they seem.
Siddhartha Jain, the co-founder stated, it’s a protection layer over existing roads in DeFi. There are a variety of dangers that are available in the environment, similar kinds of dangers which banks present because the responsible element is concentrated or most likely has blacklisting mechanisms.
Different ventures generally do their liquidity mining dependent on ETH or another stablecoin, co-founder, Arpit Agarwal added. DefiDollar clients can utilize the undertaking’s local stablecoin, DUSD, to create DFD rewards.
Conceived of the ETHGlobal HackMoney hackathon in May 2020, DefiDollar dispatched into a live item on the Ethereum mainnet in a half year and presently handles $3 million in volume, Jain said. DUSD is collateralized by Curve Finance LP tokens, as indicated by the undertaking’s documentation. DefiDollar co-founders revealed to CoinDesk that after this period, they expect there to be a lot of liquidity on the marked tokens when DFD formally dispatches one week from now.
The firm recently declared DFD, a governance token that will be distributed via a liquidity mining scheme referred to as ILMO or initial liquidity mining offering. Like other token launches, customers can claim this first supply by depositing DUSD and then run a 3-day waiting game for the token to launch fully.
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