Tower Finance Launches Algorithmic Stablecoin

 The New Holy Grail for Defi 2.0

SEOUL, Korea, – Recently, Tower Finance is proud to announce the Launch of its Algorithmic Stablecoin. Algorithm-based stablecoins are new variants of cryptocurrency tailored for offering improved price stability. In the current market today, more and more users have taken interest, as it can also help in balancing the supply and demand of the asset in circulation.

Algorithmic Stablecoin Protocol, developed by Tower Finance, looks to offer considerably improved capital efficiency in comparison to collateralized stablecoins.

What is Tower Finance?

The Tower Finance is a Fractional-Algorithmic Stablecoin, soft-pegged to the U.S. Dollar, built on the Polygon network. The protocol plans to maintain TWR price stability by storing sufficient collateral in the time locked-smart contracts. The USDC is deposited into the protocol when a user mints TWR token, while the CUBE token, which is used for minting, is burned. When the user redeems TWR tokens, the protocol pays back USDC and mints the required amount of CUBE tokens. This allows arbitrageurs to help maintain price stability.

Tower Finance Launches Algorithmic Stablecoin 1

Aiming to solve the ‘Stablecoin trilemma’

Tower Finance aims to provide a solution for the so-called ‘Stablecoin trilemma’ of decentralization, capital efficiency, and price stability by introducing TWR, its fractional-collateralized algorithmic stablecoin. Tower Finance aims to build an ecosystem that incorporates both collateral and high capital efficiency, hence developing stability.

By implementing a floating collateralization ratio, TWR not only maintains its peg in the most efficient manner possible, but it also captures value for CUBE holders and produces yield for its community of holders.

Implementing DeFi 2.0 through Protocol Owned Liquidity and Protocol Rented Liquidity

Tower Finance is the first algorithmic stablecoin protocol to adopt the ‘Protocol Owned Liquidity’ model introduced by OlympusDAO. While the structure is different, the underlying idea is similar. The protocol charges a penalty to users who terminate the vesting terms for the farming rewards. When this happens, the protocol uses 2/3 of the collected penalty for providing liquidity. Half of it is converted to USDC and used to provide liquidity. The leftover, which amounts to 1/3 of the collected penalty, is sent to the Profit Manager.

When TWR is minted with USDC and CUBE, the protocol doesn’t immediately burn CUBE. Instead, 50% of CUBE is sold to temporarily create a CUBE-USDC LP to provide additional liquidity. We call this ‘Protocol Rented Liquidity’, because the meant-to-be-burnt tokens are borrowed for a short period of time to add liquidity to Tower’s ecosystem until it is removed via governance decisions, in which case, the USDC is converted into CUBE and burned.

With a commitment for long-term sustainability yet a market fit, ultra high-yield/yield enhancement go-to-market strategy, it is perfectly destined to pave the way for stablecoin protocols in the era of DeFi 2.0

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

https://medium.com/@tower_finance/calling-all-towerians-the-time-has-come-2fa7fe9a24fc

Social Links

Twitter: https://twitter.com/tower_finance

Discord: https://discord.com/invite/KVTe6hRZK8

Medium: https://medium.com/@tower_finance

Github: https://github.com/towerfinance

Website: https://towerfinance.io/

About the author

Brent Dixon is the owner of E-Crypto News and an early adopter of cryptocurrencies. He is a Book editor- that has edited numerous books on Cryptocurrencies. He has been a writer for more than 30 years. Covering everything from Jazz Music to Blockchain Technology. He currently lives with his wife on Miami Beach, Fl.

E-Crypto News Executive Interviews

Crypto Scams

Cryptosoft
Cryptosoft Trading Bot Review
June 27, 2022
The Largest Crypto Scams Of 2022 (So Far)
The Largest Crypto Scams Of 2022 (So Far)
June 14, 2022
Scammers
How Do Scammers Entice Their Prey?
May 10, 2022
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Is The Crypto Market Combating A Lehman Brothers Moment?
Is The Crypto Market Combating A Lehman Brothers Moment?
June 30, 2022
Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin19,141 0.84 % 0.60 % 11.08 %
Ethereum1,068.7 0.16 % 1.96 % 14.11 %
Tether1.002 0.04 % 0.22 % 0.10 %
USD Coin0.9983 0.32 % 0.33 % 0.50 %
BNB218.35 0.32 % 0.72 % 8.99 %
Binance USD1.004 0.22 % 0.14 % 0.11 %
Cardano0.4499 0.86 % 0.13 % 9.71 %
XRP0.3135 0.77 % 0.20 % 14.65 %
Solana33.03 0.55 % 1.48 % 22.08 %
Dogecoin0.06657 0.11 % 0.25 % 2.91 %

bitcoin
Bitcoin (BTC) $ 19,280.43
ethereum
Ethereum (ETH) $ 1,066.92
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 219.38
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.454451
xrp
XRP (XRP) $ 0.315862
solana
Solana (SOL) $ 33.29
dogecoin
Dogecoin (DOGE) $ 0.066616