Blockchain technology aids in the reform of the forex market, with emerging projects targeting traditional pain points

Against the backdrop of multiple challenges facing the traditional forex market, blockchain technology is bringing new opportunities to this field. By leveraging the advantages of blockchain, some innovative projects are dedicated to addressing many pain points in traditional forex trading, aiming to provide users with a more convenient and efficient trading experience.

An emerging blockchain project is actively promoting the application of decentralized technology in the fragmented and traditional forex market. The project is committed to managing and processing all transactions in this vast market by building a robust blockchain infrastructure. The project team realizes that the challenges faced by fiat currency exchanges can be addressed through digital currencies such as stablecoins. However, fiat currency holders currently cannot directly access stablecoins, and the project is working to fill this gap.

The project is a foundational blockchain built on CosmosSDK, specifically designed for decentralized applications. It was established in December 2020 by two co-founders. One of them has worked at a well-known investment firm and has four years of experience in the blockchain field, bringing strategic insights to the project. The other is an experienced engineer with over ten years of work experience in finance, energy, machine learning, private equity, and consensus systems, providing complementary technical expertise to the team.

In November 2022, the project raised $10 million through a round of financing, supported by several well-known institutions. This round of financing demonstrates the industry's broad confidence in the project's vision and technological approach, despite the lack of leading investors.

The project is known for its openness, permissionless features, and high interoperability, supporting cross-chain token minting, trading, and stablecoin lending. Its bridging technology facilitates cross-chain stablecoin transactions, acting as a decentralized exchange and enhancing cross-chain liquidity.

By utilizing the Inter-Blockchain Communication (IBC) protocol, this project can seamlessly connect with other Cosmos chains. Its central integration point facilitates interoperability between different blockchain ecosystems, ensuring a unified user experience. At the core of the network is its native token, which secures the network through a Proof of Stake consensus mechanism. Token holders can earn staking rewards through delegation or validation, enjoy governance rights within the network, pay bridging fees, and serve as collateral for stablecoin issuance.

In many ways, the project replicates existing financial infrastructure in a more decentralized and transparent manner. Its native token plays a key role in the ecosystem, used for governance, network security, and generating revenue from transaction fees.

The product system of this project includes a network operating within the Cosmos ecosystem, utilizing Tendermint BFT consensus and the IBC protocol. It serves as a powerful P2P protocol to validate transactions and rewards validators for their contributions through token incentives. Additionally, there is a robust cross-chain DEX that supports efficient and liquid cryptocurrency trading, integrating AMM and order book methods to facilitate trading of stablecoins pegged to major fiat currencies.

The project also offers a non-custodial multi-currency wallet that integrates functions for specific tokens, such as staking and governance. Users can access DeFi opportunities through a single QR login, eliminating the need for multiple wallets or browser extensions.

As the reserve bank of the protocol, the project has also established a reserve system to manage collateral and increase the total coin flow on the platform. This reserve further supports the issuance of debt curves, ensuring stable and predictable operations.

Through a reserve system management, the project introduces fiat-priced stablecoins into the DeFi ecosystem. These stablecoins enable users to trade, lend, and mint within the ecosystem, expanding the stablecoin economy to include not only USD variants but also EUR, GBP, and JPY.

The network maintains the stability of the stablecoin's value through reserve ratios, minimum collateral ratios, and other control mechanisms, keeping it consistent with fiat currencies. Moreover, the protocol simplifies user access to the native token through debt curves, achieving this via deterministic pricing and a highly liquid market. This continuous token model replaces traditional token presale methods, continuously minting new tokens based on demand and algorithmic pricing.