Within the stablecoins landscape, there are several solutions that can be considered, both centralized versions like USDC or Tether as decentralized solutions like DAI or EOSDT, but not everyone knows that there are other decentralized stablecoins like USDB what do they use Bancor (BN) token.
What is the bank?
Before starting, we have to explain what Bancor is.
Is a chain protocol that provides decentralized exchanges (DEX) with more liquidity automatically.
The system is valid for both Ethereum and EOS, consider for example xnation.io which allows creating groups on the last blockchain.
Furthermore, the Bancor protocol is made up of a series of smart contracts that have been designed to carry out exchanges between peers in a single transaction thanks to the liquidity of the funds. It is worth mentioning that Bancor v2 will be launched next month with a number of improvements, including the ability to bet and vote with the BNT token on the Bancor DAO.
How to create the USDB stablecoin?
To create this stable currency, Bancor has partnered with the Peg Network protocol which, thanks to its smart contract, allows creating a stable currency from any ERC20 token, even if currently the compatible token is only that of Bancor (BNT).
Some elements are required to create the stablecoin:
- Bancor Tokens (BNT);
- A wallet that operates on the Ethereum blockchain;
- Some Ether (ETH) to cover the cost of the transaction.
After connecting to the platform here, the wallet will need to be connected and in this way, all the information, such as the balance of BNT and USDB to borrow, will be visible.
To create the stablecoin it will be necessary to first unlock the BNT by paying some gas and then deposit them in the vault, confirming the transaction again by paying a little gas in Ethereum.
The USDB Token menu contains information about the stablecoin, such as the balance, the total supply, which exceeds 82,000 USDB, and the value of the various annual interests.
The advantage of using this stable coin is that users don't have to expose themselves with their own BNT tokens, which puts them in the vault and earns interest as well.
It is also possible exchange USDB with other tokens: In fact, there are several liquidity groups that this stable currency can be traded with, even with ERC20 tokens, as Ethereum is the benchmark blockchain for this project.
Additionally, the USDB is on the EOS blockchain thanks to the work done by Block Producer (BP) EOS Nation who created the xnation.io platform through which it is possible to create a liquidity pool on both Ethereum and EOS. It is also possible to exchange various tokens, including the USDB token.