Cryptocurrency exchange Waves Exchange has announced the launch of a ‘decentralized forex’ market within its platform powered by stablecoins pegged to various fiat currencies.
According to a press release shared with CryptoGlobe, Waves Exchange will initially support seven stablecoins pegged to the value of fiat currencies: USDN, EURN, JPYN, CNYN, RUBN, UAHN and NGNN.
The stablecoins are developed with the use of the Neutrino protocol, a “plug-and-play infrastructure for algorithmic finance” voted upon by Waves Exchange’s community members. Traders on the decentralized forex market will be able to use the stablecoins to trade, swap, and earn yield rewards up to 15% through staking, according to the document.
It adds that the stablecoins are fully collateralized by Waves tokens, while the stablecoins will be pegged to the value of local currencies. JPYN, for example, will remain pegged to the value of the Japanese Yen (JPY).
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The press release adds:
A network of secure oracles will constantly supply up-to-date currency prices from fiat Forex exchanges. So, for example, the EURN/CNYN exchange rate will always equal the real-world EURN/CNYN rate.
Currently, users can already stake their USDN tokens on Waves Exchange to earn between 12% and 15% a year on their holdings, the announcement reads, but with the use of the decentralized forex (DeFo) market, these returns are going to be expanded to other currencies.
This, as DeFo is reportedly going to combine elements of Forex markets, staking, and decentralized market making protocols like Uniswap. DeFo users will be able to stake their assets, and earn more interest when providing liquidity to new stablecoin pools.
Withdrawing stakes won’t incur any penalties, allowing investors to quickly switch between trading and staking their assets. Waves Exchange is reportedly planning on adding more trading pairs in the future.
Featured image via Unsplash.