Former Babel Finance Co-founder Flex Yang Launches HOPE, a Distributed Stablecoin with Crypto Reserves
FormeFormer Babel Finance co-founder Flex Yang has recently announced the launch of a new distributed stablecoin called HOPE. This stablecoin will be backed by native crypto assets and will be accompanied by an all-in-one DeFi ecosystem built around it.
The HOPE ecosystem is designed to be a combination of the best aspects of CeFi, DeFi, and TradFi, aiming to provide transparent and frictionless next-generation infrastructure and services. The goal is to onboard a new mass market of investors, including non-crypto natives.
According to Yang, the HOPE ecosystem is built on the lessons learned from the major collapses in CeFi models in 2022. The aim is to improve the current generation of DeFi ecosystems, which cannot support mass crypto adoption. Yang has observed a major gap in the market and wants to guide the crypto industry towards a new path forward, out of the chaos of the last bear market.
The native stablecoin of the HOPE ecosystem is $HOPE, which is designed to be a distributed stablecoin backed by crypto-native reserves. In the short term, $HOPE will be a high-liquidity, easy-to-borrow, and universal collateral bridging DeFi, TradFi, and CeFi applications. In the long term, $HOPE aims to become a currency vehicle for everyone, including non-crypto natives, to enjoy financial inclusion in a fully transparent and secure environment.
Initially, $HOPE will be backed by distributed reserves of BTC and ETH, and the pegging ratio of $HOPE to the prices of its reserves of BTC and ETH will be determined by tracking their prices over a fixed period. Afterward, the reserve price of $HOPE will float with the prices of BTC and ETH, starting from around US$0.5 and gradually reaching US$1 as the market recovers.
Users can obtain $HOPE via HopeSwap, the AMM-based gateway to the HOPE Ecosystem. $HOPE holders can stake $HOPE and obtain $stHOPE, and $stHOPE holders will receive $LT as liquidity provision rewards. $LT is the incentive and governance token that will be released to incentivize liquidity provision and governance participation within the HOPE Ecosystem.
The HOPE Ecosystem consists of four main protocols: HopeSwap, HopeLend, HopeConnect, and HopeEcho. HopeSwap is an AMM-based protocol that enables users to swap between $HOPE, $LT, and other assets, and become liquidity providers to get $LT rewards and fee shares. HopeLend is a non-custodial lending protocol with multiple liquidity pools, and HopeConnect is an innovative DeFi application that allows users to trade derivatives on top CEXs without depositing assets on centralized platforms. HopeEcho will democratize TradFi access by creating synthetic assets that track the prices of real-world assets.
The HOPE Ecosystem has a future roadmap that includes the mint & burn protocol of $HOPE and the integration of third-party dApps within the ecosystem. The HOPE Ecosystem is built with the aim of lowering the barriers to entry to bridge CeFi and TradFi natives to the DeFi world. The HOPE Ecosystem is a step forward in the migration from CeFi to DeFi and could potentially drive mass crypto adoption and widen the accessibility of crypto finance.
BitMEX co-founder Arthur Hayes has suggested a novel stablecoin mechanism called NakaDollar (NUSD), which he claims will offer a USD equivalent without the need for fiat currency or existing stablecoins in crypto. The mechanism relies on a Bitcoin inverse perpetual swap, which has a payoff function of $1 divided by the Bitcoin price in USD. To obtain one unit of NUSD, a person would have to deposit one Bitcoin on a derivatives exchange like BitMEX and short one XBTUSD swap.
Read more:
- BitMEX Founder Proposes Innovative Stablecoin Mechanism Tied To Bitcoin Called NakaDollar (NUSD)
- BitMEX Co-Founder Arthur Hayes Predicts Massive Crypto Correction Followed By Sustained Bull Run