Blockchain technology empowers forex market innovation

The combination of blockchain technology and the forex market is addressing multiple pain points in traditional forex trading, providing users with a better trading experience. Some innovative projects are committed to applying decentralized technology to the fragmented and traditional forex market, managing and processing all transactions in this vast market through a robust blockchain infrastructure.

These projects realize that digital currencies such as stablecoins can effectively address the challenges faced by fiat currency exchanges. However, currently, fiat currency holders find it difficult to directly access stablecoins, which is precisely the gap that some projects are striving to fill.

Cross-chain technology empowers innovation in the forex market

A certain Blockchain network is a foundational Block built on the Cosmos SDK, designed for decentralized applications. The protocol was established in December 2020 by two co-founders. One of them had previously worked at a large investment firm and has four years of experience in the Blockchain field, bringing strategic insights to the project. The other is an experienced engineer with over ten years of work experience in finance, energy, machine learning, private equity, and consensus systems, providing complementary technical expertise to the team.

In November 2022, the project raised $10 million through a round of financing, gaining support from several well-known investment institutions. This round of financing demonstrated the industry's broad confidence in the project's vision and technological approach.

Build a Complete Cross-Chain Staking Financial System

The project is known for its openness, permissionless nature, and high interoperability, supporting cross-chain token minting, trading, and stablecoin lending. Its bridging technology facilitates cross-chain stablecoin trading, acting as a decentralized exchange and enhancing cross-chain liquidity.

By utilizing the Inter-Blockchain Communication (IBC) protocol, the project can seamlessly connect with other Cosmos chains. Its central integration point facilitates interoperability between different blockchain ecosystems, ensuring a unified user experience. At the heart of the network is its native token, which secures the network through a Proof of Stake consensus mechanism. Token holders can earn staking rewards through delegation or validation, enjoy governance rights within the network, pay bridging fees, and serve as collateral for stablecoin issuance.

The project replicates existing financial infrastructure in a more decentralized and transparent manner. Its native token plays a key role in the ecosystem, used for governance, network security, and generating revenue from transaction fees.

Product System Overview

1. Blockchain Network: Operates within the Cosmos ecosystem, utilizing Tendermint BFT consensus and IBC protocol. It serves as a powerful P2P protocol to validate transactions and rewards validators for their contributions through native token incentives. Enhances liquidity and availability of local assets by leveraging Cosmos's multi-chain architecture.

2. Decentralized Exchange: A powerful cross-chain DEX that supports efficient and liquid cryptocurrency trading. It integrates AMM and order book methods to facilitate trading of stablecoins pegged to major fiat currencies.

3. Multi-Functional Wallet: A non-custodial multi-currency wallet that integrates features for specific tokens, such as staking and governance. Users can access DeFi opportunities through a single QR login without the need for multiple wallets or browser extensions.

4. Reserve System: As the reserve bank of the protocol, managing collateral and increasing the total coin flow on the platform. This reserve further supports the issuance of debt curves, ensuring stable and predictable operations.

The project manages the stablecoin through a reserve system, introducing fiat-pegged stablecoins into the DeFi ecosystem. These stablecoins enable users to trade, lend, and mint within the ecosystem, expanding the stablecoin economy to include not only USD variants but also Euro, Pound, and Yen.

The network maintains the value stability of the stablecoin through reserve ratios, minimum collateral ratios, and other control mechanisms, keeping it aligned with fiat currencies. In addition, the protocol simplifies user access to the native token through debt curves and achieves this through deterministic pricing and a highly liquid market. This continuous token model replaces traditional token presale methods, constantly minting new tokens based on demand and algorithmic pricing.