As an experienced analyst in the DeFi space, I see Liquity’s decision to undergo a “friendly fork” as part of its v2 upgrade as a pivotal moment for the protocol and the broader DeFi ecosystem. Having closely followed Liquity’s journey with v1, it is clear that the team has learned valuable lessons from the challenges faced in the past.
Liquity, a decentralized finance platform functioning as a lender, is planning to undergo a “friendly update” or “amicable hard fork” as part of its version 2 enhancement.
Liquity v2 Set to Fix v1 Shortcomings
In a recent blog post, Liquity announced its decision to adopt the “friendly fork” approach for the deployment of its v2 upgrade. This choice was the result of deep consideration of Liquity’s past (v1) and a proactive desire to collaborate more closely with third parties. The potential benefits of using the v2 codebase as the primary solution for launching a collateralized onchain stablecoin are significant, making it an attractive prospect for Liquity moving forward.
“Liquity envisions a future where ‘friendly forks’ of Liquity v2 spread across all EVM-compatible blockchains, enabling various teams to develop an expanded ecosystem with shared goals.”
As a researcher studying the DeFi (Decentralized Finance) landscape, I’ve discovered that Liquity v2 is specifically engineered to address the complexities arising from the ongoing expansion of this ecosystem. The enlarging space brings about intense competition for the limited attention of users, builders, and liquidity providers in an increasingly crowded marketplace. In the realm of stablecoins, it’s crucial for networks to effectively persuade both parties – players and liquidity providers – to engage in their respective roles.
Liquity described this move as “expensive.”
As a researcher exploring the DeFi (Decentralized Finance) landscape, I’ve come across an intriguing development: the Liquity v2 platform is introducing a “sovereign” stablecoin. In simpler terms, this digital currency is created by depositing native network collateral and sets off a ripple effect within the DeFi ecosystem upon minting.
Reaching a definitive roadmap for Liquity v1 was quite a challenge. However, with the recent enhancements, those complications might become a thing of the past. Liquity v2 is set to bring multi-collateral configurations and customizable interest rates, among other advantages.
Crypto Market Sees Growing Popularity of Stablecoins
“This update is among the occurrences fueling the increasing preference for stablecoins among various entities, such as governments.”
Paxos Digital Singapore, a leading company in the cryptocurrency industry, has obtained permission from the Monetary Authority of Singapore (MAS) to provide digital payment token services. This important authorization enables Paxos to issue stablecoins that adhere to the regulatory guidelines set in the region. This milestone represents a major growth step for the firm on a global scale.
Circle, a well-known issuer of stablecoins, has secured an Electronic Money Institution (EMI) license in adherence to the European Union’s new Market in Crypto Assets (MiCA) framework. With this authorization, Circle becomes the first stablecoin company to comply with MiCA regulations. Subsequently, USDC and EURC, two stablecoins offered by Circle, are now accessible under EU guidelines.
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2024-07-03 19:52