ParaSwap help Forex get closer to decentralization
ParaSwap, a cross-chain decentralized exchange boasting a slick UX and pricing structure, has seen a significant increase in active wallets and transactions in the last 7-days. The introduction of Tether’s EURt stablecoin allows DeFi on Polygon and Binance Smart Chain to continue to shine whilst moving foreign exchange markets closer to decentralization.
As mentioned, the dapp is cross-chain, meaning it operates from three different networks currently. Ethereum, BSC, and Polygon. At the time of writing, ParaSwap on the Polygon network has seen a 142% increase in unique active wallets interacting with its smart contracts. Which in turn generated over 74,000 transactions generating over $4 billion in volume.
Over on BSC, ParaSwap is experiencing a similar performance although capturing lower amounts of value than its counterpart on Polygon. At the time of writing, the dapp has seen an increase of 118% or 9,080 active wallets interacting with its smart contracts. Driving over $63 million in volume through 24,410 transactions. Interestingly we see that an average transaction in the last 7-days on Polygon is worth around $54,000 while on BSC it’s more like $2,629. Or around half the value. This is interesting as it shows the number, nature, and ambition of investors on these two chains.
EURt Drives Interest
As in all instances of surging metrics, there are usually underlying causes and events around the protocol that have spurred interest from users. In this instance, the introduction of Curve Finance’s EURt token to the ecosystem was on the 7th of August. Which in turn helped the platform surpass $9 billion in total volume across Ethereum and Polygon.
Curve Finance is an automated market maker protocol designed for swapping stablecoins and other digital tokens with low fees and slippage. They announced support for tether tokens pegged to the euro as EURt at the end of July. The addition of EURt to Curve – a protocol designed to create deep on-chain liquidity using advanced bonding curves is in response to a surge in interest for the tether token pegged to the euro. Users’ requirements of decentralized exchanges are evolving and with it an increase in the usage of tether tokens overall. Tether basically converts normal money into digital currency by anchoring or tethering the value to the price of currencies like the US dollar.
The addition of EURt represents an important step towards moving foreign exchange markets on-chain and into the decentralized finance world. EURt is growing in popularity across the digital token space with Bitfinex and BitStamp listing new tether EURt pairs to support demand. Listing these pairs offers users on the platforms an additional fiat onramp option when looking to earn a yield in Euro. Moreover, the Euro is the official currency for 19 European Union member states and is the second-largest reserve currency and the second-most traded currency in the world after the US dollar.
Judging by the response from the ParaSwap and wider trader community it appears the platform is carving a very nice niche amongst more serious traders. Those with a deeper understanding of traditional financial markets and the tools required to leverage assets.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in ETH, BTC, ADA, NIOX, AGIX, MATIC, MANA, SAFEMOON, SDAO, CAKE, HEX, LINK, GRT, CRO, SHIBA INU, AND OCEAN.