Alchemint launches SDUSD, the first collateral backed stablecoin on the NEO Blockchain.
SINGAPORE, Jan. 10, 2019 /PRNewswire/ -- Alchemint Foundation launched SDUSD addressing the importance of stablecoins in a volatile market by providing traders a stable currency to hedge against market fluctuations with the value of SDUSD pegged to 1-to-1 USD. SDUSD debuted on Alchemint's platform on 22nd December 2018, with the base trading pair launching on Switcheo, the first decentralized exchange on NEO.
2018 saw an increase in the inception of USD backed stablecoin projects from established companies such as Paxo's PAX, Gemini's GUSD and Coinbase/Circle's USDC, all providing a store of value for traders hedging against volatile market conditions. Unlike IOU-backed stablecoins, SDUSD is issued through a SAR (Smart Assets Reserve) where NEO is over collateralized at a minimum rate of 150% for each SDUSD, offering stability relative to the U.S. dollar (1 SDUSD = $1 USD) through collateralization of NEO via smart contracts on NEO. Alchemint users are incentivized to ensure price stability by purchasing NEO at cheaper rates compared to market prices by participating in the liquidation of unsafe collateralized debt positions.
"We will try our best to promote SDUSD and make it a popular stablecoin among dApps (decentralized applications), trading platforms and daily users." said Zhang Ting, CEO, Alchemint.
This is also echoed by the NEO Global Development team, who believes that stablecoins such as SDUSD provides an important infrastructure for the NEO ecosystem. SDUSD aims to provide a bridge to connect the blockchain economy to the real-world economy through fiat circulation between dApps, addressing payments and asset management through its stability pegged to USD.
Switcheo, the first decentralized exchange and the most popular dApp on the NEO blockchain has also listed SDUSD as a base pairing on its exchange. Switcheo users can now trade their SDUSD against NEO and other digital assets on Switcheo Exchange.
"Switcheo is pleased to announce our partnerships with Alchemint. We believe that with the addition of SDUSD base pairings, traders will have an avenue where they can hedge against market volatility." said Jack Yeu, CCO, Switcheo Network.
Following the launch, users can now participate in the issuance of SDUSD by collateralizing their NEO on Alchemint, and trade it on Switcheo Exchange.
Alchemint is the first collateral backed stablecoin on the NEO blockchain, now tradable on Switcheo Exchange.
SOURCE Alchemint
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