DeFi
Elixir Network Launches Decentralized Synthetic USD Stablecoin
Elixir Network has launched the deUSD stablecoin, a decentralized asset that aims to change the DeFi ecosystem. The team has claimed $1 billion in liquidity for the new asset outlining its ecosystem and operations. Cryptocurrency users are eagerly awaiting projects that generate yield while providing liquidity.
Elixir announces USD
Elixir Network has launched the deUSD stablecoin, a decentralized synthetic asset. According to the release, deUSD will be issued by stETH and sDAI with deposited collateral used to short ETH. This creates a neural delta position with collateral funding via short perps while reducing risk.
“Collateralized by stETH and sDAI, the Elixir Network uses collateral to capture funding via short sales, while mitigating funding risks. deUSD holds long-term exposure in positive funding environments while increasing exposure to Treasuries in negative funding environments.
The transaction funding rate on Ethereum is positive and in case of negative funding, it can be resilient. This integration into the ecosystem acts as the preferred liquidity collateral on centralized and decentralized exchanges.
“Most Elixir DEX integrations will accept deUSD as collateral on their exchanges, resulting in additional open interest and TVL. deUSD can also be directed to native Elixir-powered exchange integrations for increased yield, further increasing liquidity on partner exchanges,” The statement reads as follows.
The company said it has $1 billion in liquidity for the stablecoin coupled with backing from Challenge projects, including the Apothecary program. The program has a total value locked (TVL) of $300 million for projects.
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The platform emphasizes decentralization
Elixir claims that the USD stablecoin is a synthetic asset that is decentralized in many areas, including execution and verifiable proofs, among others. The stablecoin is also integrated with non-custodial on-chain liquidity without reliance on centralized entities. The synthetic asset would also become Elixir’s preferred collateral, increasing its adoption. Cryptocurrency users have welcomed this development across industry sectors, highlighting the recent growth within the ecosystem.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in emerging technologies and has an eye for breaking news. Staying abreast of trends, David has reported on several niches including regulation, partnerships, crypto assets, stocks, NFTs, and more. Outside of financial markets, David enjoys cycling and horse riding.