The Coin98 mission is to create open financial infrastructures for the multi-chain community to access DeFi easily. Following this mission, Coin98 has launched a decentralized stablecoin, Coin98 Dollar (CUSD), which the platform described as the next building block in its ecosystem.
The first block on the Coin98 ecosystem was the Coin98 multi-chain Wallet, then a cross-chain aggregator protocol, the Coin98 Exchange. The secret behind the Coin98 ecosystem growth is credited to its multi-chain engine.
Why Coin98 Dollar (CUSD)?
The challenge of fragmented liquidity and the need to have a unit of account that measures the value of all the cross-chain liquidity pools in the Coin98 ecosystem is why the platform moved to launch a stablecoin (Coin98 Dollar – CUSD). This was made known by Coin98 in a blog post.
Moreover, the last two years have seen an exponential growth of smart contracts pointing out that the multi-chain timeline is here. As the multi-chain space expands, the demand for moving assets between different chains by a significant margin increases, as well as the issue of fragmented liquidity.
According to Coin98, a possible solution to fragmented liquidity is a cross-chain liquidity network like ThorChain and Stargate, and that is what Coin98 is aiming at.
How does CUSD Work?
The platform stated that CUSD is a decentralized stablecoin that is fully collateralized by assets in reserve. CUSD is designed to become a cross-chain unit of account that satisfies the DeFi demand for cross-chain liquidity. The use cases around CUSD first focus on placing CUSD as the primary medium of exchange across all products on the Coin98 ecosystem. Then gradually, CUSD will move into other DeFi ecosystems in the multi-chain world.
Users can convert 1 CUSD by sending a total of $1 worth of the collateralized assets into the CUSD Reserve smart contract. However, the platform said that in the initial phase, the collateral ratio to convert to 1 CUSD would be $1 worth of fiat-backed stablecoins like the BUSD and USDC.
For CSUD to achieve stability in the early stage, the platform seeks to apply a 1:1 redemption mechanism for the previously collateralized stablecoin in reserve.
Also, CUSD is currently deployed on Ethereum, BNB chain, and Solana, and in the long run, will integrate as many chains as possible.
In a vital note to C98 holders, Coin98 highlighted new use cases that the stablecoin CUSD would attach to the C98 token, which include;
- Collateral for borrowing CUSD on money markets.
- Addition of C98/CUSD liquidity pool on multiple decentralized platforms.
- More returns to the Treasury are governed by C98 holders.
The firm also made a call to developers with an idea on building a DApp or protocol that would adopt CUSD or market makers who want to learn more. This category of people is urged by the platform to reach them through email.
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