Andre Cronje’s latest endeavor aims to introduce a currency to DeFi.
Andre Cronje, the creator of DeFi, has launched Fixed Forex, a new decentralized stablecoin trading system.
Andre Cronje Reveals Forex Fixed Rates
Andre Cronje has developed a new DeFi protocol based on forex trading.
In a Friday blog post, Cronje unveiled the initiative, dubbed Fixed Forex. It allows users to create and exchange fiat-pegged stablecoins such as the US Dollar (USD), Euro (EUR), South African Rand (ZAR), Japanese Yen (JPY), Renminbi (CNY), and other fiat-pegged stablecoins.
Cronje is primarily known for founding Yearn Finance, Keep3r Network, and multichain, among other critical DeFi initiatives. In his statement, XYZ described his new endeavor in detail. He explained how users might create fiat-pegged stablecoins and trade them for other Ethereum assets.
To manufacture stablecoins using the protocol, users will need to offer collateral in the form of other crypto assets. The protocol will calculate Loan-to-Value (LTV) ratios and take collateral dynamically to manufacture fiat-based currencies, similar to lending protocols like Compound, Aave, and Cream Finance’s Iron Bank. Cronje pointed out that the quantity of collateral used to manufacture coins is proportionate to the amount of on-chain liquidity accessible on Fixed Forex.
Furthermore, unlike decentralized stablecoin issuers, Fixed Forex features gentle liquidations, ensuring that a user’s collateral is not liquidated during a market downturn. Instead, to settle the loan and preserve the collateralization ratio, the protocol will only liquidate a small quantity of money.
Because the Fixed Forex contract is presently unaudited, adding cash other than for experimental purposes is hazardous. According to Cronje, the project’s final version will be built on top of Curve Finance.
The value of the foreign exchange market is now estimated to be $6.6 trillion. However, despite its enormous size and popularity in traditional markets, Currency has stayed mostly outside Ethereum‘s thriving DeFi ecosystem. This might be due to the complicated dynamics of FX markets and Ethereum’s sluggish transaction times and hefty fees.
Fixed Currency, if successful, might be one of the first initiatives to deploy a large-scale decentralized forex exchange on Ethereum successfully.