A DeFi (decentralized finance) infrastructure project devoted to making advancements to the financial applications that use blockchain to run has declared that it would adopt stablecoins into the crowdloan thereof. This counts to be a prominent development in the crypto world as it would provide the first opportunity to the consumers to contribute their stablecoins into the crowdloan of the firm for parachains rather than to necessarily deposit and purchase Kusama.
A parachain is a well-known DeFi-based tool. It is categorized as a project-specific blockchain that operates parallel to the other parachains and allows for seamless data transfer and communication across the blockchains in the ecosystem of Polkadot. The company has been concentrated on manufacturing its unique parachain named Picasso, which will run on Kusama (Polkadot blockchain’s canary network). Composable has in advance started an auction for this latest Kusama parachain at the beginning of this month.
During all this process, the company has been attempting to make improvements in the current means of acquiring a parachain via staking the native tokens of the network (Dot for Polkadot and KSM for Kusama) during the auction. Nonetheless, it demands from the clients to buy these parachains-networks’ native tokens, which are predicted to turn out to be much costly, and at this time, have a very small number of use cases. To sort out this problem of KSM or DOT, Composable releases its latest advancement: enabling the customers to deposit Ethereum-based stablecoins into the crowdloan.
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A stablecoin is a very famous token under the main category of decentralized finance as the stablecoins creation is purposefully done to keep their value close to a predetermined point for avoiding volatility. A lot of the stablecoins are pegged or take their base value from the United States dollar like USDC (the USD Coin). Tether (USDT) and DAI are also considered as the other popular stablecoins that operate on Ethereum. Generally, the aforementioned three stablecoins alone possess a market cap of roughly $100B as DAI is at $6.36, USDC is at $27.57B, and USDT is at $67.38B.
This signifies that, via the Ethereum-based stablecoins adoption by Composable, the consumers in a strikingly significant number will be allowed to take part in the crowdloan process by using the tokens that are already in their possession. Moreover, the participants are also permitted to have exposure to Polkadot as well as Kusama (both are becoming more popular).