Common Prefix x Harmony: Preliminary Stablecoin Study
Common Prefix x Harmony: Preliminary Stablecoin Study
Common Prefix Researches Native Stablecoin Design for Harmony Ecosystem
Stable value assets serve as a crucial foundation for blockchain applications. Stablecoins are digital assets that are designed to maintain a stable value (or “peg”) relative to a particular asset or group of assets, usually a fiat currency like the US dollar. They provide a crucial bridge between the decentralized cryptocurrency world and traditional financial processes, allowing users to transact in a more stable and predictable way.
Common Prefix, a Harmony ecosystem partner, has released their initial research on potential native algorithmic stablecoin design for application on Harmony. In the study, Common Prefix compares and contrasts various designs and approaches, analyzing potential candidate stablecoins theoretically. The report covers Liquity’s LUSD, Gyroscope’s GYD, MakerDAO’s DAI, Frax’s FRAX, Curve’s crvUSD, and Aave’s GHO. We hope that you will take a look at the preliminary research report conducted by Common Prefix and join us on this journey to explore new world of possibilities.
For Harmony, a native stablecoin could play a vital role in facilitating commerce and financial activities within the ecosystem. From those who want to earn in stablecoin to holders looking for a new way to stake their ONE, a native stablecoin on the Harmony blockchain would help solidify its position as a blockchain platform for mainstream adoption. Additional potential use cases include lending, liquidity pool, payments for Harmony’s 1.country domains, and additional ecosystem projects.
Read the attached report for the analysis by Common Prefix:
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