Yesterday USDtz went live. USDtz is Tezos first stablecoin and will be part of a DeFi ecosystem that is in the process of being build. Quick recap from my last article: USDtz is a stablecoin with DAO features that is part of a DeFi ecosystem. USDtz is part of the StableTez project, which includes EUR, BTC and Gold-pegged stablecoins. StableTez will be used in TEZEX, the Tezos Liquidity Exchange. "Over time, TEZEX will list more and more Tezos-based stable-coins, each pegged to a the values of different currencies, respectively. Effectively, this also means that TEZEX will be eventually able to facilitate a Tezos on-chain representation of FOREX global currency trading." TEZEX will fully run on the Tezos blockchain. The next piece of the puzzle will be TezFin. Which will enable on-chain savings and loans.
USDtz is backed 1:1 with US Dollars. This will be expanded to a multi collateral target of 4:1. This will eventually consist of 2 silos of Fiat and 2 silos of XTZ. The USDtz will be the first DeFi application that is going to hold XTZ, which is an interesting detail that will influence XTZ supply and demand since this will shorten the supply side. The 4:1 collateral will be used to fulfill future features such as on-chain lending and the possibility to earn interest on holding USDtz. More information on the collateral model here.
Further more, USDtz utilizes Tezos' formal verification to protect USDtz from manipulations and oracle attacks. "The balance between shifts in supply and demand of USD Tez, including the size, and determination for minting and scaling of new USD Tez is based on autonomously executed algorithmic response to formally-verified measures of real-world market data."
USDtz has no stability fees and will be gas-efficient for trading XTZ or Tezos-based-tokens.
Last but not least, USDtz will be applicable for future DeFi developments on Tezos.
More info here: https://usdtz.com/
Another week, another advancement for the Tezos ecosystem.