Home » Blockchain-oriented Laguna Labs unveils testnet for stablecoins’ spin-off

Blockchain-oriented Laguna Labs unveils testnet for stablecoins’ spin-off

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Blockchain technology company Laguna Labs has unveiled a testnet for a “stablecoin” it is developing. Legal tender Currencies or commodities reported by Cointelegraph.

According to Cointelegraph, through an announcement on October 24, 2022, Laguna Labs said the Nuon flatcoin is like a token tied to a fiat currency such as the US dollar, as it is pegged to daily living expenses through on-chain. I said no. inflation data. The company says the idea has been followed by discussions of individuals related to the sector, including Coinbase CEO Brian Armstrong, Ethereum co-founder Vitalik Buterin, and former Coinbase CTO Balaji S. Srinivasan. and emphasized that it was inspired by a Twitter thread.

Based on information from Cointelegraph, Frax France announced in April a consumer price index (CPI) stablecoin called Frax Price Index (FPI) that utilizes ChainLink’s oracle data. The price, which started at around $1.02, reached an all-time high of $1.18 on July 19, 2022, but has since fallen 1.06% to $1.05. The Volt Protocol (VLT) token is also reportedly allowing for CPI tracking routes. Launched in October 2021, the Inflation Hedging Coin (IHC) utilizes a burn-up mechanism based on US annual inflation data and monthly CPI rates to determine the rate at which an asset burns and increases its value over time. increase the Nuon’s whitepaper emphasizes the use of an independent inflation index oracle to calculate Nuon’s peg daily, and utilizes overcollateralization and arbitrage to maintain the peg while offsetting inflation.

Additionally, Cointelegraph noted that the platform claims that the asset’s over-collateralization prevents it from falling off the peg. Since the start of the COVID-19 pandemic, annual inflation in the United States has increased, and is believed to have risen from 1.4% to about 8.2% in 2022, according to the US Inflation Calculator.

(Including insights from Cointelegraph)

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