BitGo Unveils New Stablecoin USDS at Token2049

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. A Fresh Take on Stablecoins
  2. Incentivizing Liquidity Providers
  3. Recent Developments and Risks


    4. At the Token2049 event in Singapore, BitGo announced plans to launch a novel dollar-backed stablecoin named USDS next year. The stablecoin promises to differentiate itself from existing options by introducing innovative incentives for liquidity providers.

    A Fresh Take on Stablecoins

    BitGo’s new stablecoin, USDS, will be backed by short-term Treasury bills, overnight repos, and cash, similar to many existing stablecoins. However, the company is positioning USDS as an open-participation stablecoin. Unlike its predecessors, USDS will reward institutions that contribute liquidity to its ecosystem.

    Existing stablecoins serve an important role, but we see an opportunity to create something more open and fair. The key innovation with USDS is that it rewards those who help grow the network.Mike Belshe, BitGo CEO

    Incentivizing Liquidity Providers

    The core feature of USDS is its unique approach to rewarding liquidity providers. Institutions that contribute to the USDS network will receive returns generated from the stablecoin’s reserves. These returns will be distributed based on the size of their contributions, providing a financial incentive for participating in the ecosystem.

    Returns from the cash backing USDS will be shared with liquidity providers. This not only incentivizes participation but also aligns the interests of all parties involved.Mike Belshe, BitGo CEO

    Recent Developments and Risks

    Amid these exciting announcements, BitGo faces scrutiny and potential challenges. Last August, a proposal suggested changing protocol parameters to minimize exposure to Wrapped Bitcoin (WBTC). This proposal is reportedly influenced by upcoming changes in BitGo’s custody arrangements, which will move its WBTC business from the US to Singapore and Hong Kong. The proposal highlights concerns about the involvement of prominent figures, such as Justin Sun, in BitGo’s operations. Sun’s previous associations with TUSD and the resulting market issues have raised alarms among some stakeholders. BA Labs expressed concerns that Sun’s involvement could present elevated risks to the USDS network. Despite these concerns, Belshe downplayed the risks associated with Sun’s involvement, stating that BitGo had anticipated such reactions and aimed to address them transparently.

    BitGo continues to innovate in the stablecoin space with the launch of USDS, aiming to attract liquidity providers and build a more fair and open ecosystem. However, some stakeholders are concerned about potential risks associated with the involvement of prominent figures.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Optimism Releases Required Batcher Update v1170

Optimism has announced the release of opbatcher v1170, which is mandatory for operators using the batching infrastructure for OP Stack chains.

user avatarAndrew Smith

NEAR Developers Release First Candidate for nearcore 2140

The NEAR developers have published the first release candidate for nearcore 2140, introducing significant protocol and database changes.

user avatarJacob Williams

Lido Completes Winddown of Regular Simple DVT Clusters

Lido has successfully completed the winddown of its regular Simple DVT clusters, marking a significant step in the decentralization of its validator operations.

user avatarZainab Kamara

Avalanche Schedules Helicon Network Upgrade for September 22

Avalanche has announced the Helicon network upgrade for its mainnet, set to activate on September 22 at 1500 UTC.

user avatarSon Min-ho

Uniswap Proposes Protocol Fee Rollout to Circles Arc Blockchain

Uniswap Labs has introduced a proposal to extend its protocol fee collection and UNI burn infrastructure to the Arc blockchain.

user avatarAyman Ben Youssef

Aave V4 Now Live on Circle's Arc Blockchain

Aave V4 has officially launched on Circle's newly established Arc blockchain, featuring key assets such as USDC, EURC, cirBTC, and WETH.

user avatarTando Nkube

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.