Ten Finance to Launch BNB-Backed Stablecoin USDEFI: What's it All About?

TL;DR

• Ten Finance launching USDEFI stablecoin backed by BNB on DCNTRL Network.
• BNB as collateral offers stability and liquidity in DeFi projects.
• USDEFI maintains 1 USD peg through “on-chain architecture.”
• DCNTRL Network enables high collateralization ratios and zero-interest-rate loans.
• Future plans to expand to other blockchains and offer Liquid Staked tokens as collateral.
• USDEFI aims for decentralization and regulatory compliance.

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USDEFI to Launch on DCNTRL Network

Ten Finance is set to launch USDEFI, a $ BNB-backed stablecoin through its stablecoin network DCNTRL network. In contrast to conventional stablecoins pegged to traditional fiat currencies, USDEFI maintains parity with the USD while utilizing BNB. But why is that?

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Why a BNB-Collateralized Stablecoin?

Ten Finance believes that using BNB as collateral has a number of unique benefits. Among the most established and active utility tokens on the blockchain, BNB is characterized by a stable market and robust liquidity pool. 

According to the Ten Finance team, Binance Smart Chain (BSC) is an “excellent choice” for collateralization in DeFi projects because of its superior efficiency, lower transaction fees, and rapid transaction processing capabilities.

Ten Finance's core team member, Mr Ten, explained that the decision to issue a BNB-collateralized stablecoin is relevant given the challenges encountered by the Binance ecosystem, such as the suspension of new BUSD minting.

“Given our "veteran" status of being one of the few remaining original DeFi protocols, we are, more than ever, convinced that a BNB-collateralized stablecoin would introduce a higher degree of decentralization to the Binance Smart Chain ecosystem, steering it away from the pitfalls of reliance on traditional fiat-based systems,” Mr Ten, told BSC News.

Now comes the crucial question.

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How USDEFI Will Maintain its Peg

USEDEFI will launch through DCNTRL Network, which has its on-chain architecture and immutability. Ten Finance explains that its stablecoin is based on the fact that all collateral and smart contracts are held on-chain and don't require audits or attestations as do Fiat-backed stablecoins.

The team explains that this will ensure USDEFI maintains its 1 USD peg by cap and liquidation applied to downward movements and upward fluctuations. 

“This dual-sided mechanism fosters a more balanced environment for USDEFI to thrive,” Mr Ten stated. “Given its overcollateralized design, our system is well-equipped to sustain market stability, even amidst periods of intense market volatility.”

Apart from that, DCNTRL Network’s model allows USDEFI users to access loans with high collateralization ratios. This reportedly ensures efficient use of capital, creating more stablecoins per unit of collateral.

Another key aspect of DCNTRL Network’s approach is its zero-interest-rate model. Borrowers can benefit from loans without interest, ensuring cost-effectiveness in transactions and increasing the potential for profit.

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What Lies Ahead For DCNTRL & USDEFI

The DCNTRL Network intends to expand into other blockchain ecosystems, including Ethereum, Polygon, Aptos, Sui, and Solana, thus enhancing its diversity and robustness. 

Furthermore, DCNTRL Network will offer Liquid Staked tokens as collateral. As a result, the system would gain another layer of flexibility and efficiency, allowing users to maximize their staked assets without losing participation. 

Adding to that, Mr Ten also talked about working with the existing regulatory uncertainties in this space. 

“We plan to implement comprehensive disclaimers for all dApp users to ensure clarity and transparency,” Mr Ten said. “Additionally, we'll provide SDKs to any individual or group interested in operating a USDEFI front-end.”

According to Mr. Ten, with this step, USDEFI will enhance its decentralization, expanding its reach and accessibility.

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What is TEN Finance:

TEN Finance is a yield aggregator/optimizer that makes staking and yield farming easy with the most liquid BSC liquidity pools available. The protocol ensures that users are exposed to the most robust yield farming environment in the Decentralized Finance (DeFi) market while providing security, sustainability, longevity, and simplicity. In short, TEN Finance is simplified DeFi.

Where to find TEN Finance:

Website | Twitter | Medium | Telegram | Github