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the New Holy Grail for Defi 2.0

SEOUL, Korea, Feb. 12, 2022 (GLOBE NEWSWIRE) — Not too long ago, Tower Finance is proud to announce the Launch of its Algorithmic Stablecoin. Algorithm-based stablecoins are new variants of cryptocurrency tailor-made for providing improved value stability. Within the present market right this moment, increasingly more customers have taken curiosity, as it may possibly additionally assist in balancing the provision and demand of the asset in circulation.

Algorithmic Stablecoin Protocol, developed by Tower Finance, appears to be like to supply significantly improved capital effectivity compared to collateralized stablecoins.

What’s Tower Finance?

The Tower Finance is a Fractional-Algorithmic Stablecoin, soft-pegged to the U.S. Greenback, constructed on the Polygon community. The protocol plans to take care of TWR value stability by storing enough collateral within the time locked-smart contracts. The USDC is deposited into the protocol when a person mints TWR token, whereas the CUBE token, which is used for minting, is burned. When the person redeems TWR tokens, the protocol pays again USDC and mints the required quantity of CUBE tokens. This permits arbitrageurs to assist preserve value stability.

Aiming to resolve the ‘Stablecoin trilemma’

Tower Finance goals to supply an answer for the so-called ‘Stablecoin trilemma’ of decentralization, capital effectivity, and value stability by introducing TWR, its fractional-collateralized algorithmic stablecoin. Tower Finance goals to construct an ecosystem that includes each collateral and excessive capital effectivity, therefore creating stability.

By implementing a floating collateralization ratio, TWR not solely maintains its peg in essentially the most environment friendly method attainable, however it additionally captures worth for CUBE holders and produces yield for its group of holders.

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Implementing DeFi 2.0 by Protocol Owned Liquidity and Protocol Rented Liquidity

Tower Finance is the primary algorithmic stablecoin protocol to undertake the ‘Protocol Owned Liquidity’ mannequin launched by OlympusDAO. Whereas the construction is completely different, the underlying concept is analogous. The protocol expenses a penalty to customers who terminate the vesting phrases for the farming rewards. When this occurs, the protocol makes use of 2/3 of the collected penalty for offering liquidity. Half of it’s transformed to USDC and used to supply liquidity. The leftover, which quantities to 1/3 of the collected penalty, is shipped to the Revenue Supervisor.

When TWR is minted with USDC and CUBE, the protocol does not instantly burn CUBE. As a substitute, 50% of CUBE is bought to briefly create a CUBE-USDC LP to supply extra liquidity. We name this ‘Protocol Rented Liquidity’, as a result of the meant-to-be-burnt tokens are borrowed for a brief time frame so as to add liquidity to Tower’s ecosystem till it’s eliminated through governance selections, by which case, the USDC is transformed into CUBE and burned.

With a dedication for long-term sustainability but a market match, extremely high-yield/yield enhancement go-to-market technique, it’s completely destined to pave the way in which for stablecoin protocols within the period of DeFi 2.0

Tower Finance formally launches on Valentine’s Day: 14th of Feb, 6:00am UTC.

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