The entire DeFi lending platform has announced that it plans to launch Binance Smart Chain this month.
The Apollo Protocol states that the goal is to reduce the risk of volatility in cryptocurrency markets, which often prevents financial institutions and retail investors from entering the room. This project was the signal for the dot-com bubble of the 1990s, when many companies were considered too risky to invest. Fast forward to 2020 and some of these companies are becoming well known and preferred stock options.
The platform aims to create an environment in which growth and stability are enhanced, and has developed three codes that will bring this vision to life.
AOX is pegged to a weighted basket of various assets including the US dollar, Chinese yuan, British pound and Indian rupee, as well as commodities such as crude oil, gold, coffee and wheat. It is designed to attract investors and traders on a daily basis. GDP is also tracked in the seven richest countries.
A recent blog post explains: “This diversity allows our club to reflect the current global boom. Therefore, there is a balance even if some countries, minerals or currencies are inflated or experiencing unexpected disruptions. ”
It will be complemented by AOY, a “fully stable” token designed to maintain a stable value of $ 1, which will be used as collateral for the future DeFi lending platform. Last but not least, the AOZ will act as a breeding ground for the ecosystem.
In a whitepaper, the Apollo team explained: “Current stablecoins are either highly synthetic and insecure or overly secure, and new algorithmic stablecoin models (algorithmic stablecoins) such as rebasing and seigniorage models are highly volatile. Apollo invented the third generation of algorithmic stablecoins that achieve “true seigniorage”, allowing for reduced volatility, stability, but linked. ”
More information from Apollo protocol here
He beats the competition
The Apollo Protocol has set acceptance targets for both Tether, USDC and DAI. The team behind the project says their goal was to combine the best of all of these models to create “the perfect, futuristic and innovative digital currency.” They added, “This is the original digital currency built on top of the blockchain, rather than trying to bring legacy systems into the blockchain space.”
The Binance Smart Chain is becoming more and more popular among DeFi protocols because of the way it processes more transactions at less cost.
Apollo’s goal is to ensure that growth and stability can shine without compromise – and he says a common flaw in many second generation stablecoins is that the two properties are compromised by combining them into the same mark. The team added, “By splitting these functions into two separate symbols associated with the third symbol, we allow them to exist while maximizing them separately.”
Apollo supporters include TrustSwap CEO Jeff Kerdikis. He praised the protocol and tweeted: “Cryptocurrencies need more reliable fiat currencies that cause depreciation. We need cryptocurrencies tied to assets with stable accounts that have value, such as GDP and commodity indices. ”