Palladium and Botanix Labs have announced the launch of a new stablecoin, PUSD, on Bitcoin's first EVM-equivalent Layer 2 network, according to a press release sent to Bitcoin Magazine.
The PUSD stablecoin, developed by Palladium Labs, boasts a unique feature of being over-collateralized by 110%, a strategic measure aimed at enhancing its resilience against potential risks inherent in DeFi infrastructure. Importantly, the stablecoin's algorithmic monetary policy attempts to remain immune to governance changes or manipulation by administrator keys, aiming to ensure its integrity and reliability.
"To realize the true value of decentralized finance, crypto needs to break free from infrastructure that is susceptible to exploits and manipulation," stated Palladium Labs CEO Akash Gaurav. "At Palladium, we designed this stablecoin for resilience and reliability. By leveraging the unique capabilities of the Botanix EVM, we can radically increase the security and reliability of stablecoin access for millions of people using Bitcoin."
Operating on the Botanix EVM, which has been in development since early 2023, Palladium leverages the capabilities of this platform to enhance the security and accessibility of stablecoin transactions for Bitcoin users. The Botanix EVM's underlying sidechain protocol, known as the Spiderchain, plays a pivotal role in safeguarding funds transferred from the Bitcoin base layer to the EVM network.
"The importance of native stablecoins to the technological renaissance happening on Bitcoin cannot be overstated," said Willem Schroe, inventor of the Spiderchain and co-founder of Botanix Labs. "We are thrilled to support the Palladium team in launching their over-collateralized stablecoin on our EVM network."
With the launch of PUSD on Bitcoin's first EVM Layer 2 network, Palladium and Botanix Labs aim to meet the growing demand for secure and efficient DeFi solutions, seeking to pave the way for a new era of financial innovation on the Bitcoin blockchain.
Luxor Technology Corporation (Luxor) and Bitnomial, Inc. have announced the launch of the first US exchange-traded Hashrate Futures, according to a press release sent to Bitcoin Magazine. Set to debut on Bitnomial's derivatives exchange by the end of this month, these futures contracts are specifically tailored to cater to Bitcoin miners and institutional investors alike.
"Hashrate has one of the highest volatilities of major commodities, and the April 2024 Bitcoin Halving will exacerbate this volatility," said Luxor's Head of Derivatives, Matt Williams. "Bitcoin miners need additional methods to mitigate this price risk to ensure the longevity of their businesses. Exchange-traded hashrate futures will allow them to quickly move in and out of hedging positions to de-risk their revenue streams, and the revenue certainty should improve their credit profile with lenders, which will lower their cost of securing capital."
With the impending 2024 Bitcoin Halving in mind, the Hashrate Futures aim to provide miners with a tool to hedge their future revenue streams while offering investors access to a tradable derivative tracking Bitcoin mining hashrate. The contracts, denominated in 1 petahash (PH) units and with monthly durations, will reference Luxor's Bitcoin Hashprice Index for settlement, effectively tracking the value of the underlying commodity, i.e., hashrate.
Accessible to those with Futures Commission Merchant (FCM) accounts connected to the Bitnomial exchange, the Hashrate Futures is the latest addition to Luxor's suite of hashrate financial products.
"As we approach the Bitcoin halving and witness the unprecedented demand for spot Bitcoin ETFs surpassing the available mined supply, Bitnomial stands as a pivotal bridge in the crypto ecosystem." stated Bitnomial Founder and CEO, Luke Hoersten. "Our listed hashrate and physically delivered bitcoin futures and options empower miners to navigate this evolving landscape seamlessly. Through Bitnomial, miners can efficiently trade hashrate-bitcoin futures spreads, gaining invaluable bitcoin-denominated hashrate exposure while effectively hedging and delivering mined bitcoin directly to consumers via a federally regulated exchange. This convergence of innovation and regulation solidifies Bitnomial's commitment to fostering a robust and accessible marketplace for all participants in the crypto space."
As part of Bitnomial's Bitcoin Product Complex, these physically backed contracts intend to provide a unique opportunity for market participants, with growing interest evidenced by record-high volumes and open interest during Q4 of 2023.
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