Enough has been said about the extreme volatility of cryptocurrencies and how it hinders the broader real-world adoption of cryptocurrencies. Bitcoin’s store-of-value and uncensorable medium-of-exchange propositions are vastly undermined by its huge price swings. Any asset that fluctuates by 20% in a single day cannot become a reliable instrument for either of the aforementioned value propositions. According to a few cryptocurrency maximalists, the extreme volatility of cryptocurrencies can be attributed to the speculative nature of the asset class and that the volatility will subside once investors understand the inarguable benefits of the utility aspects of cryptocurrencies. On the other side, crypto detractors posit that the high fluctuations in crypto asset prices will never lead to the real-life adoption of cryptocurrencies. It’s a chicken-and-egg problem here. More adoption curbs volatility and high volatility curbs adoption.
This is why stablecoins are important. To drive real-life adoption of cryptocurrencies, new users need to interface with the crypto world through a price-stable cryptocurrency (Stablecoins). Stablecoins are cryptocurrencies whose value is pegged to the value of a different asset (mostly USD, but other fiat-pegged stablecoins are also in existence with more in the pipeline). The number of stablecoin projects is increasingly growing every year and witnessing a sharp growth in stablecoin development activity outside the US, especially in SE Asia, with a few projects ready to be launched soon. Besides the arbitrage use case, stablecoins could potentially pave the way for mainstream adoption by enabling stablecoin-denominated wages, blockchain-based lending, and a host of other applications. We expect the stablecoin ecosystem to become richer and more vibrant through the entry of more fiat-pegged stablecoins of various currencies.
Price arbitrage between stablecoins is expected to attract lots of trading activity on exchanges. In addition, we firmly believe that having a robust and liquid market for trading between stablecoins of various currencies has the potential to disrupt the costly and less transparent legacy infrastructure for remittances. As such, we decided to leverage the technology of the 0x protocol to launch a relayer that predominantly focuses on stablecoin-to-stablecoin trading, in order to build out the next generation and crypto-powered FX markets.
Centralized exchanges have for long been the achilles heel of the crypto ecosystem. Besides offering almost zero privacy through mandatory KYC/AML imposition and the onerous onboarding procedure, centralized exchanges are also the most vulnerable to many attack vectors, including exchange hacks, DDoS attacks, etc. On the other hand, 0x-based relayers enable p2p trustless trading where the relayer does not take the ownership of users’ funds at any point during the trade and also offer full privacy. Users can simply plug-in their wallets to our relayer and trade tokens directly in and out of their wallets effortlessly for any ERC20 token.
ForDeX maintains an off-chain order-book that matches orders and sends the orders to the Ethereum blockchain for execution.
We look forward to bringing the ‘alpha’ version of ForDex to you on the 26th of this month. During our alpha stage, we intend to provide the following features on our relayer:
1.Stablecoin-to-Stablecoin trading for the USDC/DAI, PAX/USDC, KRWb/DAI, etc.
2.First-ever fiat onramp for a relayer, with assistance from Wyre
3.First-ever exchange to facilitate fast and transparent conversion of USD to KRW through