Cross-chain Stablecoin Protocol BabelFish Launches on RSK!
Coinspeaker
Cross-chain Stablecoin Protocol BabelFish Launches on RSK!
“At BabelFish we are obsessed with stablecoins as a catalyst for the decentralized financial system. That is why, our mission is to facilitate its flow and exchange, as well as reduce the risk and secure users’ deposits. BabelFish adds and distributes various stablecoins, facilitating and improving the use of crypto dollars in different protocols. Our vision is to add the liquidity, market and access of the different stablecoins that are abstracted in XUSD. The priority of the alpha product is to attract dollar liquidity to Rootstock (RSK), but in the long term we will facilitate 1: 1 exchange between various stablecoins and chains in demand, with the option to save and earn interest in rBTC and FISH. We’re excited to announce the support of RDOC to the Babelfish stablecoin protocol!”
BabelFish aggregates liquidity from various issuers and chains, and has quickly become the largest stablecoin on RSK. The meta-stablecoin XUSD reached $10mn in deposits within two months of being live on mainnet.
The amount of solutions and integrations in the RSK defi ecosystem has experienced a significant growth over the year, and BabelFish intends to play a leading role in facilitating this as a stablecoin gateway. The fast growth and acceptance of XUSD is a sign of a strong appetite among users to port their stablecoins to Rootstock and experiment in the growing space of DeFi on Bitcoin.
BabelFish’s initial growth can be mainly attributed to Sovryn, a DeFi project launched earlier this year, and the first to integrate XUSD into its bridge and frontend to simplify UI/UX and provide deep stablecoin liquidity. BabelFish will also conduct its upcoming token sale using Sovryn’s Origin platform for its upcoming token sale. Funds raised will be used to support the decentralised team and integrate with more stablecoins, bridges and protocols.
BabelFish’s DAO objective is to facilitate stablecoin flow across chains and reduce idiosyncratic risks; and it aims to reward stablecoin research, development and competition with this end. The protocol currently accepts major stablecoins from Ethereum, Binance, and RSK. According to the project’s written material “…the market remains fragmented, two players dominate >85% of the total USD-stablecoin float, and systemic risks abound. In the decentralized economy we ought not to rely on one or two issuers of USD-stablecoins but rather enable a thousand stablecoins to bloom and communicate with each other to bring mass adoption.“
The BabelFish Mission
As stablecoins and DeFi markets develop across chains, their combined USD liquidity is fractured, which is suboptimal for the industry. BabelFish aggregates these fractured liquidity swamps to create a liquidity lake that provides deeper liquidity and a simpler interface.
BabelFish solves these challenges as a decentralized aggregator and distributor of stablecoins in which users can vote in the direction of the protocol. BabelFish is like a stablecoin dBank with branches across the DeFi multi-chain universe, whose function is to enable stablecoin exchange 1:1 across chains and survive market distortions. If a user wants to use her stablecoin on another chain, she can stick it on BabelFish and seamlessly get a convertible stablecoin on the other side.