Industry
CorionX Looks to Solve Stablecoin Roadblocks with New Partnership
Bitcoinist | Oct 08, 2020 | 17:37
The Corion Foundation, a Swiss company laser-focused on encouraging the world-wide adoption of stable coins, decentralized finance (DeFi), and central bank digital currencies (CBDCs), has just formed a strategic partnership with the Syscoin Foundation — the official body that represents Syscoin: a highly-scalable platform that makes interoperability between Ethereum and other blockchains accessible to anyone.
The two foundations will work together to develop solutions that help grow the stable coin and open finance ecosystem, by leveraging Syscoin’s technology stack to overcome one of the major hurdles faced by the industry today and drive adoption by coordinating a DeFi and stable coin awareness campaign — comprised of webinars, training sessions, working groups, and other initiatives.
Breaking Down Barriers with Interoperability
The Corion Foundation promotes and supports the adoption of stable coins and other decentralized technologies that empower the unbanked and provide a more economical alternative to the legacy financial system.
With this vision in mind, it launched the CorionX platform, which is tasked with fostering the adoption of stable coins and related technologies through the provision of infrastructure that aids in growth, as well as through the unique utility token known as CorionX (CORX) that is used to incentivize development and adoption of stable coins by institutions, retailers, and everyday users.
Now, thanks to its new partnership with Syscoin, CorionX and partners will now benefit from the power of Syscoin’s Bridge solution, which is used for establishing two-way communication channels between Syscoin and other blockchains, drastically reducing the cost of transactions while opening up a wide range of new possibilities. As a result, users will be able to trade their ERC20 tokens with dramatically reduced fees using the bridge, while allowing ERC20 projects to offload simple value transfers to the Syscoin network while maintaining their platform and smart contracts on Ethereum.
“Our combined focus will include specific stablecoins, DeFi, and helping the unbanked and over-banked. Together we will drive wider adoption of blockchain technology,” said Jag Sidhu, Syscoin Foundation Chairman in the press release.
This new partnership is aimed at cutting down barriers to entry for individuals and projects in the DeFi and open finance (OpenFi) niches, helping to make stable coin issuance and usage cheaper and more accessible, while enabling continued growth of DeFi and OpenFi.
The Growth of Stablecoins and the Rise of DeFi
The last year has seen a dramatic uptick in the usage of stable coins, as an increasing number of people look seek to leverage their properties — such as resistance to volatility and ease of use.
In the last year alone, the amount of Tether (USDT) — the most popular USD-pegged stable coin in circulation — has increased by more than 300%, making USDT the third-largest cryptocurrency by market capitalization. Much of this growth can be attributed to the massive uptick in interest and innovation in the decentralized finance (DeFi) niche in recent months, as platforms like Uniswap, Curve, Aave, and Compound give users a way to turn a relatively safe return on their stable coin deposits, by providing liquidity or through collateralized lending.
Total Value of Ethereum assets locked in DeFi protocols (Image: DeFi Pulse)
Overall, as per data from DeFi Pulse, the total value of assets locked up in Ethereum DeFi protocols has increased from $530 million up to over $10.4 billion in the last year, representing growth of close to 2,000% — most of which occurred in the last three months. However, with Ethereum fees recently reaching record highs, Corion believes that interoperability solutions like Syscoin Bridge will be needed to ensure DeFi remains accessible to anybody — and not just those that can bear the high fees.
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