The cryptocurrency exchange Coinflex has announced the launch of a unique interest-bearing stablecoin called Flexusd. The new stablecoin is considered to be the first U.S. dollar backed cryptocurrency that pays interest at the basic level. In addition, the new token is also built on the Ethereum blockchain and Bitcoin Cash network by using the simple ledger protocol.
Coinflex, a digital currency trading platform, revealed the creation of a new stablecoin token that has aroused people’s interest. A stablecoin is a cryptocurrency that is linked to the price of fiat currency, traditionally the U.S. dollar. This allows people to hold crypto assets without being exposed to the huge price fluctuations found in the Bitcoin (BTC) or Ethereum (ETH) markets.
The stable currency economy is developing rapidly, and now it is a digital asset worth 23 billion US dollars in fixed assets. CEO of Coinflex.com Mark Lamber The new stablecoin token was introduced to his Twitter followers on Wednesday.
“We are honored to launch the first interest-bearing stablecoin,” Lamb Tweet. “While you hold the private key, Flexusd will bring income. Currently, it pays 8% interest, so it can get income from our repurchase market, thus powering our deliverable income. The only sustainable The income comes from leverage.” Coinflex CEO added.
The website description of the new token indicates that Flexusd is a multi-yield stable currency that operates in a non-custodial manner. Traditionally, stablecoins have the highest yields in the market, but users need to use them as collateral or deposit them in a centralized exchange.
The portal stated: “Flexusd and all Flex assets can earn interest even if they sit in a wallet, defi application, exchange or margin account.” “This achieves what we call’increased yield’, that is, using this machine Flex assets with a yield rate obtain additional revenue from various sources of these cryptocurrencies.”
Coinflex detailed that the token will be available through the Ethereum and Bitcoin Cash blockchains during the initial launch. The exchange is using the Simple Ledger Protocol (SLP) framework to issue coins on the BCH side. In the future, Coinflex plans to distribute Flexusd in many chains including chain network, Tron and EOS. The stablecoins issued by Coinflex can also be obtained through various decentralized financial (defi) platforms.
The “increased rate of return” program not only provides benefits for Flexusd stablecoin owners, as Coinflex details that the concept can be used with Flex-packaged assets such as Flexbtc, Flexeth and Flexlink. Therefore, Coinflex stated that the exchange will conduct three repurchase auctions every day, and Flex Asset users will “share in proportion to any interest earned by users on borrowing assets that form the basis of Flex Assets.”
On social media and crypto-related forums, many supporters of the Biosafety Clearing House are excited about interest-bearing stablecoins. “This is huge”, the full-node Bitcoin Cash development team Bitcoin Unlimited Tweet.
On Reddit, a Bitcoin Cash supporter asked what is the difference between Flexusd and Tether, and whether the new token was backed up and reviewed. The CEO of Coinflex answered this question and said: “It has always been fully supported. Flexusd lent potential USDC to Coinflex’s repurchase market.”
Lamb concluded: “In fact, we will conduct an audit to open source the code of the repurchase bot and the read-only API key.” “So you will be able to view all balances at any time and accurately verify what’s under the hood. and The difference in USDT is that USDT pays 0% interest, while Flexusd pays interest.”
What do you think of the stable currency Flexusd and the concept of earning interest on the basic layer? Let us know your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Coinflex,
Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author is not directly or indirectly responsible for any damage or loss caused or allegedly caused by the use or reliance on any content, goods or services mentioned in this article or related thereto.