pTokens has announced the launch of the new ERC-20 token, pLTC, which will represent Litecoin on the Ethereum blockchain. For now it has been launched on testnet, as well as the two predecessors pEOS and pBTC.
Litecoin is currently the sixth largest cryptocurrency in the world by market capitalization, with an overall value slightly higher than that of Tether. Thanks to the new pLTC tokens, it will also be possible to use Litecoin within the decentralized tools based on Ethereum smart contracts.
pLTC, in fact, allows any Litecoin holder to exchange their cryptocurrencies in an ERC20 token that can be used with all Ethereum-based dApps, tools and platforms. The pTokens are ERC20 tokens that represent tokens from other blockchains on the Ethereum blockchain, such as EOS, Bitcoin and Litecoin.
They are collateralised 1:1 with the underlying cryptocurrency, and to generate them it is necessary to block the tokens of the underlying cryptocurrency as collateral, in order to mint new pToken through the appropriate dApp. The cryptocurrencies placed as collateral can be redeemed at any time by returning the pTokens, and collecting them on their wallets. In this way the possession of cryptocurrencies remains in fact to their owner, making them usable in this way within the Ethereum ecosystem.
The goal of pTokens, however, is actually to make any cryptocurrency compatible with any blockchain, although for now only EOS, BTC and LTC have been integrated on the Ethereum blockchain in order to make these tokens usable within the DeFi ecosystem.
This should make different blockchains compatible, or rather dialoguing, to unlock the liquidity of the internal decentralized financial market, ensuring that cryptocurrencies are no longer limited to their native blockchain, but become compatible with all other blockchains.
Another goal of pTokens is to allow users to instantly exchange their cryptocurrencies, so that they can enter and exit the market continuously, quickly and easily.