Injective Debuts Agora’s First Native Stablecoin: AUSD
Layer one blockchain Injective launched Agora’s AUSD, its first native stablecoin, fully collateralized and backed by VanEck. The stablecoin aims to enhance liquidity between DeFi and TradFi markets.
What’s the significance: The launch of AUSD that bridges DeFi and TradFi markets may enhance liquidity, reduce risk for traders, and offer yield opportunities.
The Big Picture: The stablecoin market, now the third-largest sector in crypto, continues to grow, emphasizing the increasing importance of digital currencies that bridge traditional financial systems and decentralized networks.
Key details:
- On October 31, Injective introduced AUSD, its first native stablecoin.
- AUSD is fully collateralized and backed by assets managed by VanEck and custodied by State Street.
- The stablecoin’s backing includes U.S. Treasury bills, cash, and overnight reverse repurchase agreements.
- AUSD is available only to non-restricted countries, excluding several specified nations.
The numbers: AUSD is backed by assets managed by VanEck, with $100B in assets under management, and custodied by State Street, which manages $4.1T.
How it works: According to Injective, the stablecoin enhances trading and yield-earning opportunities within Injective’s DeFi ecosystem.
- AUSD eliminates the need for additional bridges, facilitating easier on/off ramping between Injective and centralized exchanges.
- AUSD provides users full yield, supporting various initiatives like burn auctions and on-chain staking.
Key quote:
“AUSD is differentiated from other stablecoins in how it offers users full yield. This makes it a powerful vehicle in Injective’s initiatives—including burn auctions and on-chain staking—to ensure project users are the core beneficiaries of ecosystem revenue. Support from VanEck and State Street are a testament to Injective and Agora’s potential to achieve our collective mission in merging institutional and DeFi systems through decentralized financial infrastructure.”
Eric Chen, CEO and Co-Founder, Injective Labs
Nick van Eck, CEO of Agora, highlighted the dominance of USD-backed stablecoins, with a 99.7% market share, as key assets for capital movement.
- He emphasized Injective’s strong ecosystem, which he noted to have processed over $40 billion in USD stablecoin volume, achieved 1 billion on-chain transactions this year, and has over 500K active addresses.
- van Eck stated that these statistics make Injective an ideal platform for launching AUSD.
What is Agora: It is a stablecoin startup co-founded by Nick van Eck, Drake Evans, and Joe McGrady. The upcoming launch of the AUSD was first announced in April.
Between the lines: While AUSD presents exciting opportunities, its success will depend on user adoption and the broader acceptance of stablecoins in the financial ecosystem.
However: The market’s volatility and regulatory scrutiny surrounding stablecoins could pose challenges, potentially impacting user confidence and usage.
Worth reading: Injective is a layer 1 blockchain that serves as an open interoperable smart contracts platform and claims to only charge $0.01 worth of fees or lower. Check out this article on Injective Blockchain Guide and Token Airdrop Strategy.
This article is published on BitPinas: Injective Debuts Agora’s First Native Stablecoin: AUSD
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