pTokens announced the launch of the new ERC20 token, pLTC, which will represent Litecoin on the Ethereum blockchain.
For now, it has been launched on the testnet like its two predecessors pEOS and pBTC.
Litecoin is currently the sixth cryptocurrency in the world by market capitalization, with a total value slightly higher than that of Tether. Thanks to the new pLTC tokens it will also be possible to use Litecoin within the decentralized tools based on Ethereum smart contracts.
In fact, pLTC allows any Litecoin holder to convert their cryptocurrency in an ERC20 token that can be used across all dApps, tools and platforms based on Ethereum.
pTokens are ERC20 tokens that represent tokens of other blockchains, such as EOS, Bitcoin and Litecoin, on Ethereum.
They are collateralized 1:1 with the underlying cryptocurrency, and to generate them it is necessary to lock the tokens of the underlying cryptocurrency as collateral, in order to create new pTokens through the dApp. The cryptocurrencies that have been secured can be redeemed at any time by returning the pTokens, and cashing them on proprietary wallets. This allows custody of the cryptocurrency to remain with their owner, making them usable within the Ethereum ecosystem.
The goal of pTokens is to make any cryptocurrency compatible with any blockchain, although for now only EOS, BTC and LTC have been integrated on the Ethereum blockchain in order to make these tokens usable within the DeFi ecosystem.
This should render compatible, or rather interoperable, previously separate blockchains, so as to unlock the liquidity of the internal decentralized financial market, allowing cryptocurrencies to become compatible with all other blockchains rather than limited to their native blockchain.
Another goal of pTokens is to allow users to exchange their cryptocurrencies instantly, so that they can enter and exit the market continuously, quickly and easily.
When adding to this the fact that the total value of tokens locked in DeFi tools has exceeded one billion dollars, it becomes clear how fast the development and diffusion of decentralized finance tools is progressing.