Capapult Finance, a decentralized finance (DeFi) project announced that they are planning to launch a new stablecoin. The new stablecoin, SOLID, will be a soft pegged stablecoin on Terra blockchain; a blockchain where many are familiar with.
Earlier this year, we witnessed Terra’s collapse as their stablecoin terrausd (UST) depegged from the $1 USD parity. This incident caused a domino effect and made ripples throughout the whole crypto market. Terra blockchain ecosystem has now migrated to Phoenix blockchain and renamed as terraclassicusd (USTC). USTC is currently worth $0.036 per unit. Following the debut of the Terra 2.0 network, they introduced a new local cryptocurrency called Terra (LUNA) 2.0.
Capapult Finance, a defi initiative, revealed plans to launch “Solid,” a new “soft-pegged stablecoin” built on top of the Terra network. They are hoping to be the solution for Terra’s depegging incident and bring a new light towards Terra’s ecosystem. The stablecoin concept was developed in a whitepaper titled “Solid, a Soft-Pegged Stablecoin on Terra.”
Solid is an over-collateralized and completely decentralized soft-pegged stablecoin on Terra. According to their whitepaper, they are hoping to bring users a low volatility coin which is as decentralized as possible. They stated that:
” These decentralized finance applications need stable assets, and stablecoins backed by fiat currencies are not a complete solution. Thus, to make blockchain technology more common there needs to be an asset with minimal volatility, one that is as decentralized as possible. It is becoming more obvious each and every day that decentralized money needs a decentralized stablecoin.”
SOLID is minted via Collateralized Debt Position (CDP), in which users deposit interest-earning collateral and borrow SOLID. Furthermore, this mechanism will work alongside Capapult Finance‘s governance token, CAPA.
Honesty and trust is the key for a successful project. However, I think that the community are all feeling skeptical of the Terra Ecosystem especially since they have quite a few failed projects. They are, in a roundabout way, the cause of the current crypto winter. I really wish to see Capacult Finance succeed in their stablecoin project. Hopefully, they will prove the community wrong and bring about something interesting for all to see. In the meantime, check out MEXC with the latest topics, industry news and articles. We believe that an educated audience is a valued consumer. So what are you waiting for? Start your crypto journey with MEXC today!