Cryptocurrency exchange Coinflex is rolling out an exclusive interest-bearing stablecoin known as Flexusd. During the announcement, the company said the new stablecoin is the first dollar-supported cryptocurrency that will pay interest at the base level.
Additionally, it will be based on the Bitcoin Cash network and the Ethereum blockchain. The stablecoin will also leverage the Simple Ledger Protocol, according to the announcement. The coin will be tied to the U.S. dollar. It will enable holders to manage their cryptocurrency and protect themselves from high price fluctuations in both Etherem (ETH) and Bitcoin (BTC).
Generally, stablecoins offers some of the highest yields in the market, but the holder needs to deposit them on a centralized exchange or use them as collateral.
Holders of the stablecoin will be entitled to rewards
With the massive growth of the stablecoin economy, the total worth of flat-pegged digital assets has exceeded $23 billion. Mark Lamb, Coinflex.com’s chief executive officer, opened up via Twitter about the new stablecoin on Wednesday.
“We’re proud to have launched the first interest bearing stablecoin,” he tweeted.
We're proud to have launched the first interest bearing stablecoin! flexUSD pays yield while you hold the private keys! Currently paying 8% interest, it earns yield from our repo market which powers our deliverable perps!
The only sustainable yield is from leverage. flexUSD https://t.co/JbUR90TjcU
— Mark Lamb 💪 (@MarkDavidLamb) November 18, 2020
Lamb further said that holders of the coin will be entitled to yields, earned via the repo market.
The Coinflex website revealed that Flexusd is a multi-million bearing stablecoin operating in a non-custodial fashion. Even when the Flex assets lie idle in a margin account, exchange, DeFi app, or wallet, they still earn interest, according to the announcement. It ensures what is known as ‘Yield-on-Yield”, which is earning extra yield from natively-bearing Flex Assets.
Coinbase also said the stablecoins will be available on the Bitcoin Cash and Ethereum blockchain at the first launch.
Benefits are available to holders of all Coinflex products
The exchange will use the Simple Ledger Protocol at the initial launch on the BCH platform. But there are plans to make the stablecoins available on a wide range of networks including EOS, Tron, as well as Polkadot. The company also hopes to make the stablecoin available on some decentralized finance platforms.
The benefits from Flexusd stablecoin will not only be shared by Coinflex holders, but applies to other Flex wrapped asses like Flexlink, Flexeth, and Flexbtc.