Demeter Sets to Become One of the Crucial Players in the Stable Coin Sector
September 24, 2021 at 06:18 AM EDT
Brisbane, Australia--(Newsfile Corp. - September 24, 2021) - The cryptocurrency market has positively influenced the stable coin sector over the past few months. One of the ways the cryptocurrency market impacts the stable coin sector is through public blockchain networks. Some public blockchains, such as the HECO blockchain, have grown rapidly in the past year. The HECO blockchain has attracted many users due to its high performance, but the ecosystem needs decentralized stable coins. Demeter was born to solve the need; It is a decentralized stable coin marketplace protocol based on Heco. It has both the lending through collateral and mining stable coins through collateral functions, providing users with a robust DUSD stable coin at an affordable cost.
Demeter Ecosystem can be categorized into two functions:
Demeter has created a sustainable interest rate mechanism for the decentralized lending protocol by integrating and grading all crypto assets like Liquidity provider tokens(LP tokens), NFT-fi tokens, etc. The different collateral options help to create stability in the platform. Furthermore, it helps in managing the interest rates and volume through smart contracts. Demeter has succeeded in creating a credit line made possible by borrowers depositing cryptocurrencies and other digital assets into the platform. Each asset has a collateral ratio that represents the loan-to-value ratio. The loan-to-value ratio shows the value of the digital assets made as collateral by the users and corresponds to the value of the available loan.
The Demeter platform has a governance token called DMT token and a decentralized stable coin called DUSD. The value of the DUSD is backed by different cryptocurrency assets, thereby making it faster, affordable, and reliable. The minting of DUSD is the same as lending $1 of debt; the credit will be shared between the minting and borrowing.
For the sustainability and stability of DUSD, two mechanisms were put into place. The first mechanism is the target rate feedback mechanism and the second mechanism is the dynamic interest rate mechanism.
Since Demeter protocol is centered around DAO governance, the platform governance token DMT can be used to participate in governance voting, DAO revenue pool reward allocation, and so much more.
The Demeter platform's innovative approach to decentralized stable coins has positioned it as a core project on the HECO blockchain and in the stable coin sector at large.
If you want to join their community and utilize the platform's functions, you can learn more through their social media platforms.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/97524