A guide to the Bancor USDB stablecoin
A guide to the Bancor USDB stablecoin
Stable Coin

A guide to the Bancor USDB stablecoin

By Alfredo de Candia - 14 Jun 2020

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Within the stablecoin landscape, there are several solutions that can be considered, both centralized versions such as USDC or Tether and decentralized solutions such as DAI or EOSDT, but not everyone knows that there are also other decentralized stablecoins such as USDB which uses the Bancor (BNT) token.

What is Bancor?

Before starting, we have to explain what Bancor is. 

It is an on-chain protocol that provides decentralized exchanges (DEX) with more liquidity in an automatic way.

The system is valid for both Ethereum and EOS, consider for example xnation.io which allows the creation of pools on the latter blockchain.

In addition, Bancor’s protocol is made up of a series of smart contracts that have been designed to perform peer-to-peer exchanges in a single transaction thanks to the liquidity of pools. It is worth mentioning that next month Bancor v2 will be launched with a series of improvements, including the possibility of staking and voting with the BNT token in the Bancor DAO.

How to create the USDB stablecoin?

In order to create this stablecoin, Bancor has entered into a partnership with the Peg Network protocol which, thanks to its smart contract, allows creating a stablecoin from any ERC20 token, even if at present the supported token is only that of Bancor (BNT).

Some elements are required to create the stablecoin:

  • Bancor (BNT) tokens;
  • A wallet that operates on the Ethereum blockchain;
  • Some Ether (ETH) to cover the cost of the transaction.

After connecting to the platform here, the wallet will need to be connected and in this way, all the information such as the BNT balance and the USDB to borrow will be visible.

To create the stablecoin it will be necessary to first unlock the BNT by paying some gas and then deposit them in the vault, again confirming the transaction by paying some gas on Ethereum.

usdb

The USDB Token menu contains information about the stablecoin, such as the balance, the total supply, which is just over 82,000 USDB, and the value of the various annual interests.

usdb

The advantage of using this stablecoin is that the users don’t have to expose themselves with their own BNT tokens, thereby putting them in the vault and earning interest as well.

It is also possible to swap USDB with other tokens: in fact there are several liquidity pools with which it is possible to exchange this stablecoin, even with ERC20 tokens, since Ethereum is the reference blockchain for this project.

Additionally, USDB is on the EOS blockchain thanks to the work done by Block Producer (BP) EOS Nation that created the xnation.io platform through which it is possible to create a liquidity pool both on Ethereum and EOS. It is also possible to exchange various tokens, including the USDB token.

 

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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