Monexbit: New Stablecoin Liquidity Pool Launched at DeFi * Crypto News Today
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Shell Protocol project announced a new liquidity offering in the segment of decentralized finance, launching another steblecoin pool.

Not a day goes by lately in the decentralized finance (DeFi) market without announcements of new initiatives. One of such recent news is the announcement of the Shell Protocol project about offering a liquidity pool formed by stabelcoins. However, winning a place in the sun in this segment may not be easy, according to Monexbit.

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When choosing a name, the new protocol was inspired by the idea of shells, which are one of the oldest forms of money. However, the liquidity pool it proposes is not formed by shells.

As noted by analysts at Monexbit, the staplecoins are experiencing a second birth in 2020. The total capitalization of the stabelcoin market now exceeds $20 billion. Traditionally, these coins are valued for their lower volatility compared to other crypto-assets.

What shells does the protocol stand on


As the project team explains, they were guided by a number of fundamental principles when launching the new pool. These include, but are not limited to, providing deep liquidity, protection against the loss of dollar pegs and dynamic commissions, as well as compatibility with tokens from other pools.

Overall, Shell Protocol intends to combine the characteristics of Curve, Balancer, mStable and Mooniswap into one. The project team hopes to use stabelcoins to build an online monetary system and create a means of international settlement available to all.

The first pool will be formed from 4 stablcoins, distributed as follows: 30% DAI, 30% USDC, 30% USDT and 10% SUSD. Such balance will help to provide protection in case one of the koins loses its peg to dollar rate.

The dynamic system will condition an increase in commissions when the rate of stabelcoin deviates from the peg, which will allow to redistribute profits from arbitrage traders in favor of liquidity providers.

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