ETC Labs and Fantom Foundation, the Non-profit arm of Fantom (FTM) have announced a collaboration to create Decentralised Finance (DeFi) in the Fantom ecosystem. A press release issued on Monday stated that Ethereum Classic would serve as collateral for issuing a stablecoin on the Fantom platform.
According to the statement, Fantom will utilise Xar Network; a DeFi-oriented public Blockchain developed applying Fantom’s Lachesis and TxFlow consensus, as a more extensible analogue to the well known Ethereum lending platform MakerDAO.
Michael Chen, CMO of Fantom Foundation reported:
“We’re collaborating with ETC Labs to bring DeFi, including all aspects of our tech stack (e.g., stablecoins, lending, staking, asset issuance, collateralization, etc.) to the Xar ecosystem.”
ETC As Collateral
Ethereum Classic (ETC) will operate as collateral to mint a stablecoin on the Fantom platform similar to MakerDAO’s Dai on Ethereum. Notwithstanding, Xar Network’s distinct design facilitates agnostic issuance of collateralised stablecoins exterior of ETC, which involve any supported Collateralized Stable Currency Tokens (CSCTs) on the network.
ETC will serve as the collateral tailored CSCT progeny of corporations, Central Banks, and financial institutions on Xar Network. Consequently, issuing outfits can preserve absolute authority over the used guarantee and also stake the analogous CSCT to create compensations in a stablecoin using the fee pool from Fantom.
The release maintained that, as the original chain of Ethereum, ETC has unfailingly stuck to the sole intention of Blockchain, which is decentralisation and immutability. Obviously, referring to the fork after the DAO hack that saw ETH altering its Blockchain.
“Like Bitcoin, ETC has a fixed and clear monetary policy, which makes ETC as “hard money” and more suitable as collateral in the DeFi ecosystem,” the press release pointed out.
Xar Network’s Capability
The Xar Network’s versatility makes it perfect for DeFi on Fantom and Cosmos which is quickly establishing some interesting DeFi tools, the statement noted. It named some of its open-source applications as collateralised loans, collateralised index tokens, liquidity pools, synthetic swaps, and protocol-level atomic swaps.
Moreover, Xar, besides is ERC-20 token standard and Binance Chain’s rising BEP-2 model compatible. Again, its aptitudes for Decentralised Finance are inseparably linked to Fantom’s open-source consensus modules — Lachesis and TxFlow.
In the future, the statement revealed that the collaboration between the two platforms would extend the peculiarities and usage within their ecosystem. Particularly, leveraging ETC to enhance the asset’s liquidity and deploy it in DeFi products across a spectrum of networks.