Binance DEX, the decentralized version of the leading cryptocurrency exchange Binance.com is expanding its repertoire with additional listing pairs. This week it has introduced the stablecoin on the decentralized platform courtesy of Stably, the startup behind the stablecoin Stable USD [USDS]. Binance announced on Monday the addition of two trading pairs for the Binance DEX-based stablecoin USDSB on the Binance.com and will soon be listing against the Binance Coin [BNB] pair on the Binance DEX platform. “Binance will open trading for USDSB/USDT and USDSB/USDS trading pairs at 2019/06/24 10:00 AM (UTC),” the announcement read on the Binance website.
As alluded to on the ticker symbol of the StableUSD version on the Binance Chain (USDSB), the token is based on the Binance Chain token standard of BEP2 while its USDS counterpart is based on the more popular ERC-20 standard. So far the USDSB will be trading against the BNB exclusively on Binance DEX but a notification from Stably stated that more trading pairs on the Binance DEX are coming soon. “We are also planning to list USDSB with additional assets on Binance DEX very soon in the near future,” Stably stated.
According to Stably, the USDS stablecoin, which launched on the Binance.com platform on February 1st this year, is backed by United States dollar reserves in the ratio of 1:1. Similarly, the USDSB will be backed on a 1:1 basis against the Dollar. “Regulated, fiat-backed stablecoins are backed by physical reserves of cash and can be redeemed at a 1:1 ratio.” Similarly to the USDS, the USDSB will also be issued by Prime Trust, a Nevada-chartered trust company.
As the name suggests, stablecoins are designed to be stable against the volatility of the general market. Cryptocurrencies are some of the most volatile assets on the planet in terms of valuations and stablecoins were created with similar properties to these assets but with pegs to more stable assets such as fiat currencies that are relatively stable (more often) due to the intervention of regulators and other market stabilizers such as institutions.
The leading stablecoin so far is the Tether Coin [USDT] issued by the Tether Company, an affiliated subsidiary of the iFinex company. As described by Stably, the USDS stablecoin, “virtually eliminates the crippling price volatility of traditional cryptocurrencies, like Bitcoin and Ethereum, while still retaining many of their useful characteristics.”