HaloDAO, the DeF i project spearheading non-USD stablecoins, has chosen to integrate with Balancer and its advanced V2 platform to facilitate swaps and yield generation for leading stablecoins based on non-USD fiat, such as XSGD, THKD and EURS.
Balancer V2 offers the best all-around solution for HaloDAO’s purpose, as it is among the only viable AMM architectures for facilitating swaps between low volatility assets such as fiat currencies. Models like Curve’s StableSwap are designed for assets that have the same nominal value, such as various permutations of USD stablecoins or wrapped crypto assets. This model does not bring any advantages for pairs that have a tight, but non-zero realistic price range, which is the case for stablecoin-based forex.
Integrating with Balancer V2 allows HaloDAO to create custom AMM bonding curves to optimize forex swaps, but it also carries significant benefits for yield generation and overall liquidity of the stablecoins spearheaded by HaloDAO. With Balancer V2, it is easy to create additional pairs with popular non-USD stablecoins and leading cryptocurrencies, creating useful markets like BTC/XSGD, ETH/TAUD and others. Furthermore, the capital-efficient model of Balancer V2 will enable composable usage of local stablecoin liquidity, for example by lending the underlying reserves and acquiring more yield. The modular and battle-tested design means that HaloDAO will not need to perform expensive migrations to add new features to the pairs.
Supplying liquidity to HaloDAO’s Balancer pairs will let users take advantage of a “triple-dip” reward scheme of RNBW, BAL and the swap fees. Integrations with other HaloDAO partners may take rewards even further. HaloDAO is also developing lending markets for the local stablecoins, which will be particularly efficient given the ability to supply AMM pool reserves to these vaults.
“The integration with Balancer V2 enables HaloDAO to complete several elements of its vision in one fell swoop,” said Jun Ming, Co-Founder of HaloDAO. “We want to create a full stack ecosystem for local stablecoins, and this means creating enough liquidity so that users could swap from local stablecoins into cryptocurrencies, or back. Coupled with our second step, the provision of simple fiat-to-crypto gateways from local currencies to local stablecoins, we can finally bootstrap a DeFi and crypto ecosystem detached from the US dollar.”
The purpose of HaloDAO is to connect users from regions without a strong USD presence to the world of crypto. Doing so requires a significant amount of legwork to incentivize liquidity in all layers of the crypto stack, including DeFi AMMs and lending protocols. A crucial step is the connection between the crypto and real world, with HaloDAO focusing on creating on and off-ramps for local stablecoins and the respective local fiat currencies.
HaloDAO aims to build inclusive Web 3.0 infrastructure to bridge traditional and permissionless finance. We do this by building a stablecoin optimized Automated Market Maker (AMM), to facilitate efficient, on demand currency exchange and a stablecoin specific lending market that provides high interest yields on local currencies.
- Jun Yong
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