COIN360 has recently enabled tracking for EOSDT by Equilibrium, an EOS-based stablecoin, which can now be found here. Do other stablecoins exist on the EOS blockchain, and what role will they play in the development of the EOS ecosystem? In the article below, we address these questions and evaluate the progress stablecoins have made on EOS so far.
The EOS blockchain has a number of noteworthy advantages that have recently allowed it to gain more traction in the crypto community. In particular, when we compare EOS to the most used blockchain platform, Ethereum, what comes to mind is EOS’s superior end-user experience, great scalability, dPoS consensus protocol (which is being adopted by Ethereum as well, but it’s expected to be a slow and painful transition), and last but not least - its non-existent transaction fees.
One department the emerging EOS blockchain has been lacking in (while Maker DAO already exists on Ethereum), is a transparent stablecoin. However, currently there are some projects on the EOS blockchain that are being built with the use of similar principles: vUSD, USDE and EOSDT. CUSD is another stablecoin that entered the EOS market earlier, but represents a different, centralized approach without decentralized governance and utility tokens.
EOSDT and USDE, like most other stablecoins, are pegged to the US dollar, but unlike their centralized peers—like Carbon USD—they aren’t backed by fiat money. EOSDT, for instance, is generated via the Equilibrium framework, which has a self-service gateway where anyone can collateralize their digital assets and issue EOSDT stablecoins. As of May 2019, over $10M worth of EOS has been locked in to issue over 3M EOSDT.
Below is a list of the main stablecoin use-cases that both existing and emerging stablecoins are expected to make possible or drastically improve on the EOS blockchain:
As you can see, the prospects for EOS stablecoins are promising, and we have not seen all of them yet, with Daniel Larimer recently publishing an extensive article—the size of a full-fledged whitepaper—describing his own vision of an asset-backed stablecoin on EOS, based on the experience of BitShares. Whether he proceeds to act on his project draft, and how he does it, still remains to be seen and it’s worth keeping an eye on.
Thanks for reading,
The COIN360 Editorial Team