DeFi components on Tezos: ETHtz brings ETH to Tezos DeFi

DeFi components on Tezos: ETHtz brings ETH to Tezos DeFi

By Allen Walters | Publish0x posts | 26 Dec 2020


ETHtz is launched and brings ETH to Tezos' DeFi. ETHtz is wrapped ETH, backed by ETH 1:1 and can be used in the growing Tezos DeFi ecosystem. ETHtz will accompany tzBTC and USDtz which have been available for several months now. Additionally, another stablecoin will enter the ecosystem: Kolibri. Kolibri is a second USD-pegged stablecoin on Tezos. Other tokens that will enter the stage in Q1, are EURtz, GLDtz and wrapped ERC20 tokens.

Currently USDtz, tzBTC and XTZ can be traded on DEXter, which is the first decentralized exchange built on Tezos. ETHtz will be added to the tradingpairs (XTZ/ETHtz, and ETHtz/USDtz). Soon Quipuswap, a second decentralized exchange, will launch on Tezos and these tokens should be trading there too.

An interesting pair that we hope to see soon is ETHtz - tzBTC. Currently all pairs include XTZ. But an ETHtz - tzBTC pair should be interesting to traders that do not trade XTZ. This could be a great opportunity to attract traders outside the Tezos community and introduce them to Tezos-based DEXes. And most importantly: introduce them to the extreme low transaction costs and the absence of delays due to a clogged up netork. Ethereum fees often exceed a couple of dollars per transaction, while Tezos's fees are close to nothing. You might not care about a couple of dollars, but when trading often, a hundred transactions will cost you several hundreds of dollars, which makes it worth to trade on Tezos instead. Especially if you don't trade high amounts at a time. 

Additionally, you can profit from the "early days market inefficiencies" due to low volume/ liquidity. This means that you can often buy one of both pairs at a discount and sell the other at a price higher compared to the market price. When TEZEX goes live, this will become even more interesting, since you can then move your ETH from Ethereum to Tezos in a few clicks. (No KYC requirered). More about TEZEX tomorrow in the next part of this series. 

Obtaining ETHtz
You will be able to obtain ETHtz in the same way as USDtz. But in the first phase you will probably only be able to go through minteries first until supply is expanded. Currently all minteries and exchanges are in the process of onboarding and going through their KYC process that is managed by Tokensoft. Once the supply is initiated, ETHtz will also be available on DEXter (and when launched, on Quipuswap and TEZEX).

Wallets
ETHtz can be stored on the same wallets as USDtz: 
Wallets that have trading enabled for DEXTer (and soon Quipuswap):
- Thanos webwallet (Chrome/Brave Browser Extension, Ledger compatible)
- Magma mobile wallet (iOS and Android)
Not compatible with DEXter yet:
- Galleon Desktop for Mac, Windows (Ledger compatible) Galleon has announced they are working on Dexter support. More info should follow soon.
- AirGap (Mobile and Desktop)

Call to DeFi builders:
Tezos stablecoin foundation supports DeFi tech and projects. If you want to start a DeFe project on Tezos, Tezos Stablecoin Foundation is there to support you. So make sure to reach out.

SABZ tokens
All stable coins and wrapped tokens that will be issued by StableTech, will have one umbrella governance token: SABZ. So this also goes for ETHtz. SABZ tokens will be distributed to TRU tokenholders and earned by users. SABZ are governance tokens and will play a role in voting on subjects like distribution and supply caps.
The first batch of SABZ tokens will be issued to TRU tokenholders. The Trustee Network will be launched soon, which is a governance network for all Stable Tech DeFi applications. Holders of TRU tokens will receive 1:1 SABZ tokens (and all tokens that will be issued for any of the "Stable Tech" DeFi applications). TRU tokenholders will be the ones to create stability in the primary phase of token distribution. They are not intended to be the ones to preserve majority in governance. After the initial batch release of SABZ tokens to TRU holders, users will start to earn SABZ tokens too and slowly but surely the TRU holders majority position will be overtaken.

Good news for early users: Kevin Mehrabi informed me that current early adopters will retroactively receive SABZ tokens at a certain point in time.

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New to Tezos? Read this full introduction to Tezos.

Here you can read more about the Status of the Tezos ecosystem. (Latest news, developments and growth of the adoption rate and on-chain statistics)

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Allen Walters
Allen Walters

Fascinated by blockchain and future proofing cryptocurrency. Discover the tech before it gets relevant. Twitter: @IgnoranceIt


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