Decentralized exchanges (DEX) brought inclusion to the business world and created several modalities within the “Finance” concept of investments, such as Savings, Stakings, Loans, Pools, and Swaps, with daily liquidity or not, with more risks or not.
Recently, the Waves protocol launched DeFo (Descentralized Forex), a new type of exchange that trades foreign currencies on a hybrid blockchain platform.
Based on the Neutrino protocol, the company Waves.Exchange launched stable assets (stablecoins) for Forex-type trading linked to fiat currencies.
The first “test” assets made available for trading are the European Community Euro (EURN), the Japanese Yen (Yen), the Chinese Yuan (CNYN), the Russian Ruble (RUBN), the Ukrainian Hryvnia (UAHN), and the Naiara Nigerian (NGNN).
The NGNN was selected due to its supposed great potential for membership, and the rest came through community voting to join the USDN, the dollar-indexed stablecoin launched earlier this year by the Waves Exchange.
As a guarantee for contracts within the Waves network, the protocol added the NSBT token, which is also being used in DeFos' voting systems for its governance management.
The Neutrino protocol uses the Uniswap model combined with a token with stablecoin mechanics. Liquidity for Uniswap's transactions is generally provided through user pools that also ensure protocol stability.
Users provide their USDN tokens to maintain the liquidity of derivative assets that in the future may be indexed to any other assets that exist in the world, such as FIATs and commodities.
In the case of DeFos, to make the experience similar to Forex trading, Waves created an algorithm that issues tokens every time there is an imbalance in the system.
In this way, the Neutrino protocol acts differently from those that block cryptocurrencies as a guarantee for contracts.
The generated smart contracts produce different secondary tokens that are exchanged instantly (Swap) with almost zero rates on the network.
To have a base, users who trade Forex on the exchange Waves will pay fees of 0.003 Waves. As of today, each WAVES costs $ 2.4 dollars, which would represent a fee of $ 0.0072 dollars.
This means that assets can be paired 1: 1 with any asset and generate stablecoins based on the mechanics of derivatives.
Profits do not come from P2P loans, as in most projects on the Ethereum network, but from the economy of the blockchain itself.
So, basically, the Waves network creates a new stablecoin appearance, without the need for FIAT custody in a bank.
In the crypto world there is already a range of crypto and protocols with different functions, but not Forex. And the global Forex market is estimated to capitalize on trillions of dollars.
We already have cryptocurrencies, stablecoins, tokens, leveraged tokens, tokenized assets, decentralized finance protocols (DeFi), centralized and decentralized exchanges (DEX), and now Forex tokens (DeFo) arrive to form a new ecosystem of stable assets in the world.
