HaloDAO Builds Custom AMM on Balancer V2 to Facilitate Non-USD Stablecoin Swaps and Liquidity

HaloDAO is building an automated market maker on Balancer.

HaloDAO Integrates DeFi Staple

HaloDAO, the DeFi project spearheading non-USD stablecoins, has chosen to integrate with Balancer and its advanced V2 platform to facilitate swaps and yield generation for leading stablecoins based on non-USD fiat currencies, such as XSGD, THKD, and EURS.

Balancer V2 offers the best all-around solution for HaloDAO’s purpose, as it is among the only viable AMM architectures for facilitating swaps between low volatility assets such as fiat currencies. Models like Curve’s StableSwap are designed for assets that have the same nominal value, such as various permutations of USD stablecoins or wrapped crypto assets. This model does not bring any advantages for pairs that have a tight, but non-zero realistic price range, which is the case for stablecoin-based forex.

Integrating with Balancer V2 allows HaloDAO to create custom AMM bonding curves to optimize forex swaps, but it also carries significant benefits for yield generation and overall liquidity of the stablecoins spearheaded by HaloDAO. With Balancer V2, it is easy to create additional pairs with popular non-USD stablecoins and leading cryptocurrencies, creating useful markets like BTC/XSGD, ETH/TAUD, and others. Furthermore, the capital-efficient model of Balancer V2 will enable composable usage of local stablecoin liquidity, for example by lending the underlying reserves and acquiring more yield. The modular and battle-tested design means that HaloDAO will not need to perform expensive migrations to add new features to the pairs.

Supplying liquidity to HaloDAO’s Balancer pairs will let users take advantage of a “triple-dip” reward scheme of RNBW, BAL, and the swap fees. Integrations with other HaloDAO partners may take rewards even further. HaloDAO is also developing lending markets for the local stablecoins, which will be particularly efficient given the ability to supply AMM pool reserves to these vaults. Jun Ming, the co-founder of HaloDAO, said of the Balancer integration:

“The integration with Balancer V2 enables HaloDAO to complete several elements of its vision in one fell swoop. We want to create a full stack ecosystem for local stablecoins, and this means creating enough liquidity so that users could swap from local stablecoins into cryptocurrencies, or back. Coupled with our second step, the provision of simple fiat-to-crypto gateways from local currencies to local stablecoins, we can finally bootstrap a DeFi and crypto ecosystem detached from the U.S. dollar.”

The purpose of HaloDAO is to connect users from regions without a strong USD presence to the world of crypto. Doing so requires a significant amount of legwork to incentivize liquidity in all layers of the crypto stack, including DeFi AMMs and lending protocols. A crucial step is the connection between the crypto and real world, with HaloDAO focusing on creating on and off-ramps for local stablecoins and the respective local fiat currencies.

HaloDAO aims to build inclusive Web 3.0 infrastructure to bridge traditional and permissionless finance. It achieves this by building a stablecoin optimized automated market maker (AMM), to facilitate efficient, on-demand currency exchange and a stablecoin specific lending market that provides high-interest yields on local currencies.

For more information, contact Jun Yong at [email protected]

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article