Propeller is pleased to announce our investment in Handle Finance, a decentralised multi-currency stablecoin exchange platform backed by Ethereum.
Stablecoins attend to the volatility inherent to traditional cryptocurrencies by tying their value to an external asset such as the US dollar or gold to induce price stability. They represent a way to store value with minimal risk whilst remaining on chain.
There are many stablecoins pegged to the US dollar; $USDT, $USDC and $DAI are some of the most prominent. There are however not many options for decentralised stablecoins offered in foreign currencies.
Handle Finance is poised to address this deficiency, offering a purpose built platform for the creation and conversion of multi-currency stablecoins; called fxTokens.
In the platform’s initial iteration, there will be fxToken equivalents for the Australian Dollar (fxAUD), Japanese Yen (fxJPY), Korean Won (fxKRW), Chinese Renmimbi (fxCNY), and the Singapore Dollar (fxSGD).
The platform boasts an intuitive interface where users can manage their fxToken holdings and interact with the handle.fi ecosystem.
By submitting ETH as collateral to the vault (support for wBTC and other ERC-20 tokens as collateral to follow), users are able to mint fxTokens pegged to their desired currency. Collateral within the vault can be unlocked by repaying fxToken debt through the burning of fxTokens.
The protocol is governed through its $FOREX token, distributed to participants in the ecosystem as a reward and granting them platform governance. Key facts include a total supply of 420,000,000 $FOREX tokens for an initial 182 week period; followed by a 2.1% annual terminal inflation rate.
The Handle Finance platform will offer a much sought after market for foreign currency stablecoins and has the backing of some of the biggest names in institutional digital asset investment.
For more about how the HandleFi ecosystem operates, have a read of their materials and visit the links below.
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