SUSHI

New Stablecoin Liquidity Pool Appears on DeFi Market

Navigation

Curve.fi & CRV Token – Overview, Liquidity Pools, Voting, Vesting #DeFi

New Stablecoin Liquidity Pool Appears on DeFi Market

New Stablecoin Liquidity Pool Appears on DeFi Market
CONTENT

  • Shell Protocol Launches New Stablecoin Liquidity Pool.

  • Priority will be given to liquidity providers over arbitrage traders.

  • Shell is trying to carve a niche in a crowded segment.

International consortium of news organizations developing transparency standards.

The Shell Protocol project announced a new liquidity offer in the decentralized finance segment, launching another stablecoin pool.

Recently, on the decentralized finance market (DeFiDecentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More) and not a day goes by without reports of new initiatives. One of these latest news was the announcement of the Shell Protocol project to offer a liquidity pool formed by stablecoins. However, winning a spot in the sun in this segment can be tricky.

When choosing a name, the new protocol took inspiration from the idea of ​​shells, which are one of the oldest forms of money. However, the pool of liquidity offered by him is not formed by shells.

New Stablecoin Liquidity Pool Appears on DeFi Market

Stablecoins in 2020 are experiencing a rebirth. The total capitalization of the stablecoin market now exceeds $ 20 billion. Traditionally, these coins are valued for lower volatility compared to other cryptoassets.

one/
We are now LIVE! Shell is a liquidity pool protocol optimized for stablecoins.https: //t.co/aWYdhB52pv

– Shell Protocol (@ShellProtocol) October 5, 2020

Do you want to keep abreast of the latest news from the crypto industry? Join the discussion in our Telegram channel – and you will find out everything!

What shells is the protocol on

As the project team explains, when launching the new pool, they were guided by a number of fundamental principles. These include, inter alia, the provision of deep liquidity, protection against loss of peg to the dollar and dynamic fees, as well as compatibility with tokens from other pools..

Overall, the Shell Protocol intends to combine the characteristics of Curve, Balancer, mStable, and Mooniswap. The project team hopes to use stablecoins to build a monetary Internet system and create a means of international settlements accessible to everyone.

The first pool will be formed of 4 stablecoins, distributed in the following proportion: 30% DAI, 30% USDC, 30% USDT and 10% SUSD. Such a balance will help provide protection in the event one of the coins loses its peg to the dollar..

The dynamic system will cause an increase in commissions when the stablecoin rate deviates from the peg, which will redistribute profits from arbitrage traders in favor of liquidity providers.

New Stablecoin Liquidity Pool Appears on DeFi Market

A place under the sun

It is worth noting that Shell Protocol, with its new pool of stablecoins, is trying to break into a fairly lively segment of the DeFi market. In this field, he will have to face more than one competitor..

So, the mStable protocol is focused on offering stablecoins. At the end of September, the Origin Protocol launched the dollar-pegged DeFi stablecoin OUSD, promising passive income for everyone. Dai is working in the same niche with its offer of the Dai Savings Rate, and the Pickle Finance protocol.

Perhaps in order to confidently claim its place in the sun in this crowded market, Shell Protocol will have to offer customers more than a fraction of their trading commissions..

See also: DeFi: how not to burn out on the choice of a token

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

Similar articles

Similar articles