The year 2019 is slowly becoming the era of stablecoins. It appears a new type of currency will be issued in the Tezos blockchain, called USDTZ.
The demand for stablecoins is not slowing down in the cryptocurrency industry.
USDTZ is an Interesting Type of Stablecoin
So far, not one project has been able to dethrone Tether’s USDT, despite no lack of effort by various teams and companies.
The USDTZ stablecoin is trying to do things different, albeit it also looks very similar to the recent changes affecting DAI.
This on-chain Tezos stable coin will always be pegged to the value of 1 US Dollar and provide liquidity for this particular ecosystem.
It will also give holders returns after a while, and provide on-chain lending opportunities for specific assets.
What makes USDTZ a Dai clone is how it will be collateralized by both fiat currency and XTZ, the native Tezos asset.
For the DeFi applications and ecosystems out there, this particular stablecoin could prove to be an option worth exploring.
Under the hood, USDTZ will also benefit from Tezos’ Liquid PoS consensus mechanism.
The “savings account” aspect of this particular asset is what will undoubtedly raise a lot of questions.
By letting users fixate their USDTZ for longer periods to earn an annual interest rate, this asset behaves very differently from other stablecoins.
The team also claims how fixated assets will not need to be backed by either fiat or XTZ for a specific period.
While that might make sense to some, it is not necessarily a viable approach in the long run.
This would allow more USDTZ to come into circulation compared to the actual holdings to back them with value.
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