Stabletech launches ETHtz tokens on tezos’ mainnet allowing Tezos users to exchange native tokens to the ETH price. StableTech is a Tezos development group like the Research Laboratory Nomadic Labs. The group also links up with companies such as Wealthchain.
Amazingly, transaction on Tezos is 99% cheaper than a transaction on Ethereum. Also, the price of the ETHtz will always be equal to that of the ether. This is because price is issued in a proportion of 1:1.
Tezos embraces DeFi
In early May 2020, StableTech launched the dollar-based stablecoin USDtz. In the coming weeks, StableTech will also launch “TEZEX: Bridge. The bridge is a packaging service that facilitates the issuance of ETHtz from ETH tokens, and will soon allow Packaged Bitcoin (BTCtz).
Simlarly, the Finance application of the blockchain will likely launch during the first quarter of 2021. This offers automated lending services to Tezos users, similar to Compound or Aave services on Ethereum.
DeFi, short for decentralized finance, represents a group of blockchain-based applications that replicate or enhance the functions of traditional financial institutions. This is without the need for a centralized third party like a bank or broker. Instead, they use smart contracts, on a blockchain network to facilitate functions like loan issuances, asset swaps, and interest payments.
DeFi also popularized the concept of “wrapped tokens” with products like Wrapped Bitcoin and renBTC. Wrapped tokens lock digital assets like Bitcoin in a custodial account or smart contract protocol in exchange for producing a 1:1 replacement of the token on an alternative blockchain, like Ethereum or Tezos.
Since June 2020, the “total value locked” (TVL) in DeFi protocols has increased from just $1 billion to more than $16 billion, according to DeFi data aggregator DeFi Pulse. TVL measures the value of digital assets contributed as collateral and liquidity across the DeFi ecosystem.