Kava Labs is developing a stablecoin, USDX, backed by XRP on a Cosmos Zone, which dynamically maintains stability to USD with decentralized mechanisms. Moreover, USDX has a native token, XRS, which is used by validators to vote on blocks and participate in governance.
XRP-backed stablecoin: USDX
Kava Labs is already working with Interledger Protocol [ILP] to bring blockchains, wallets, and exchanges, the interoperability of ILP. Further, Kava Labs is also backed and invested in by Ripple’s initiative, Xpring.
The Co-founder and COO of Kava Labs, Brian Kerr, in a conversation with AMBCrypto said,
“The USDX /xrp peg on our GitHub is merely a specification our developers created in exploration around its feasibility. We have yet to decide if we will strategically pursue this as an initiative for Kava.”
Cosmos is a blockchain that aims to solve the scalability and interoperability problems of many Proof-of-Stake blockchains. USDX will be implemented as a Cosmos Zone designed to peg XRP and issue a XRP-collateralized token, USDX.
Brian Kerr further confirmed that the “specification works and getting XRP into Cosmos is feasible, as well as Cosmos CDPs [Collateralized Debt Positions] with external assets as collateral.”
XRP Community and USDX
The XRP-backed stablecoin was first spotted by a Twitter user, @GermanCryptoInv, after he tweeted,
— Crypto Invest (@GermanCryptoInv) May 16, 2019
Ever since this discovery, the XRP Army/community has been excited about the XRP-backed stablecoin. However, Brian Kerr confirmed that it would require reallocation of huge amounts of resources and a shift in focus from their original project, “Switch App,” which helps users swap cryptocurrencies in the fastest and most secure way, across various blockchains.
He also confirmed that they used XRP as collateral for the stablecoin because of XRP’s liquidity, and because they were “close with the Ripple team so we had a natural lean to supporting XRP… along with BTC.”
Kerr further added,
“We’re passionate about DeFi, but given the scope of a project like USDX, it would require a lot of resources from us to pursue. For this reason, we are taking it slow and weighing the best course for us. It’s hard because ILP has been a huge focus for us, but with our recent release of the Kava Switch App, I think we’re at a good point to consider new projects now.”
Is there a Future for USDX?
The COO also confirmed that if Kava Labs proceeded in this direction, they would start with XRP and BTC. They would move from here to other large-cap coins like Bitcoin, Ethereum, XRP, and Binance Coin, etc.
Additionally, Kerr confirmed that they would “love” to implement USDX and have it support Binance Coin. However, he stated that Kava Labs,
“haven’t spoken to the binance team yet about it. It’s an incredible idea to add to the BNB DEX, using the CDP of USDX to allow DEX users to effectively do margin trades.”
When asked about Kava Labs’ next steps after the testing for XRP was successful, Kerr added,
“We have a lot more things to consider, such as pieces of the go-to market that would be required. example – partners, getting validators on board to run nodes for the blockchain, hiring to support with the needed resources, initial exchange partners, etc.”
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Top Losers: Ethereum, XRP, and EOS bleed as crypto-market follows Bitcoin’s lead
The cryptocurrency market has been enjoying an unprecedented bull run over the past few months, a trend that reached its apex when Bitcoin briefly touched the $13,000 mark on Binance. However, on June 27, the market witnessed a trend reversal, with the bears returning to the world of digital assets.
Apart from Bitcoin’s price dropping by over 5% in an hour, popular altcoins like Ethereum, XRP and EOS also suffered a hit in value, with the bears ravaging all coins in the top ten cryptocurrencies club.
At the time of writing, Ethereum had fallen from $331.39 to $321.52 within an hour. This whopping 9.87 percent drop contributed to its market cap settling at $34.35 billion. The second largest cryptocurrency held a 24-hour trading volume of $106.66 million, a decent amount when compared to its figures during the bear market.
A majority of the volume was held by DOBI Exchange, a popular cryptocurrency exchange which controlled $636.38 million of all ETH trade. DOBI was followed by Huobi Global, with a 3.3 percent hold on all Ethereum transaction volumes.
The next altcoin to be affected by the sudden bear market was XRP, which fell by 6.67 percent in the hourly cycle. At press time, XRP was trading at $0.42, a far cry from the $0.47 it was trading at 24 hours ago. The cryptocurrency had a market cap of $18.22 billion and a 24-hour trading volume of $3.27 billion. BW.com, a relatively unknown cryptocurrency platform, controlled a majority of XRP trade with $232.13 million in ETH trading volume.
EOS was the third most affected by the bears’ attack, as the cryptocurrency fell by 3.41 percent in 50 minutes. EOS was trading at $6.446, with a market cap of $5.97 billion. The $5.29 billion trading volume was majorly split between LBank and Huobi Global, both of which recorded 9.48 percent and 5.75 percent in EOS trading volume, respectively.
The sudden market crash was speculated to be a major correction of prices after a sustained period of bullish rise by the coins. This fall coincided with predictions made by popular analysts and traders who had previously claimed that Bitcoin and the rest of the market will go through more bear runs, before they reach their all-time highs.
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