CorionX Partners with Syscoin to Help Make Stablecoins Mainstream

Table of Contents

• CorionX Partners with Syscoin
• Why Stablecoins Are Gaining Momentum

In 2020, stablecoins and decentralized finance (DeFi) have exploded in popularity, as more people than ever before look to take their finances back into their own hands using decentralized alternatives to traditional financial infrastructure. 

However, despite its staggering growth in recent months, stablecoins and DeFi still face a significant adoption roadblock ahead due to the current limitations of the Ethereum blockchain —  which is the main backbone of most stablecoins and DeFi products. Nonetheless, CorionX, a platform built to evangelize stablecoins and democratize access to DeFi, believes massive growth is still on the cards — but the industry needs support. 

CorionX Partners with Syscoin

With this view in mind, the Corion Foundation — an entity tasked with helping to build out the stablecoin industry and improve the adoption of stable digital assets — partnered with Syscoin to help develop the nascent stablecoin and DeFi industries with a growth-oriented education and awareness campaign. As part of the collaboration, The Corion Foundation and the Syscoin Foundation will produce a range of materials and media, including AMAs, webinars, training sessions, seminars, and working groups, helping to drive home the benefits of decentralized technologies like stablecoins, central bank digital currencies (CBDCs), and DeFi. 

It will also see CorionX make use of Syscoin’s Bridge platform, which is a unique interoperability solution that can be used to link different blockchains together, allowing users to transfer their assets across different blockchains both cheaply and securely. Syscoin Bridge currently allows users to move their ERC-20 tokens with massively lower fees than transferring them on their native chain, helping to tackle the high fees that impede adoption of Ethereum-based assets, such as most stablecoins (e.g. Tether, True USD, USD Coin etc) and DeFi assets.

Since Ethereum fees recently reached an average of more than $12 for standard transactions, and potentially several times higher whenever a smart contract is invoked (e.g. when interacting with DeFi apps), less well-heeled investors may have felt less inclined to test out DeFi protocols or transact with stablecoins. Through the use of the Syscoin Bridge, CorionX hopes to break down this hurdle once and for all, helping more people experience the benefits of the new decentralized monetary system.

Why Stablecoins Are Gaining Momentum

For anybody that has experienced the volatility of most standard cryptocurrencies, stablecoins can be considered a simple saving grace. As their name suggests, they are digital assets that are designed maintain their value at a fixed peg, usually because they are backed by an underlying asset. 

There are various types of stablecoins, the most common of which are backed by US dollars (Image: CB Insights)

In the case of Tether and USD Coin, each unit is backed by 1 US dollar held in the custody of the token issuer. On the other hand, for CACHE gold and Tether Gold, each unit is backed by a fixed denomination of gold, held in the vaults of the token issuer. Since these assets are stable, they are useful as means of payment, since neither vendors not buyers take on volatility risk when receiving or sending payments, making them easier to get to grips with for fiat currency users. 

But stablecoins are also an easy on-ramp into the rapidly expanding world of DeFi, which consists of tools, services and protocols that mimic those offered by traditional finance institutions, but are open for practically anybody to use, wherever they live. DeFi promises to bank the unbanked, provide easy-to-access passive income streams, and enable anyone to contribute to the development of the future of finance.

Now, with the help CorionX and Syscoin, even more people will be exposed to this rapidly developing industry — without paying an arm and a leg in fees for the privilege.