bStable

In crypto, change is constant. The price volatility of most cryptocurrencies has hindered the development of decentralized finance. Because of this, Stablecoins have become an essential ingredient of the crypto pie and have been one of the main foundations upon which DeFi has been built on so far.

Hundreds of DeFi products across blockchains rely on stablecoins as safe-haven assets and hundreds of thousands of users are already using decentralized protocols to earn a higher interest on their stablecoins than is possible on their fiat. While stablecoins and DeFi have opened the doors to a new world of finance, there are many financial processes that remain undisrupted by stablecoins and cryptocurrency in general.

Cryptocurrency payment solutions, for example, have yet to gather mass adoption. The main reason for this is due to misaligned incentives. If a seller is worried about volatility and wants to receive USD or something similar but a buyer only wants to pay in more volatile cryptocurrencies, the seller is less likely to accept the buyer’s crypto as a valid currency for the payment. Flipping the problem around, if a seller wants to receive a specific cryptocurrency as payment, but the buyer does not own it or does not want to spend it (think of Bitcoin payments), then it’s unlikely a payment will be made. In either case, both the sellers and the buyers are concerned with losing value after their payments. The solution is to give the seller the opportunity to select the currency they want to accept while at the same time giving the buyer the freedom to pay in whichever currency they own or choose. That’s exactly what bStable’s payment solution does in a trust-less, and non-custodial manner, and in a single transaction.

bStable also combines these incentive-aligning payment tools with a stablecoin automated market-maker (AMM) mechanism and “savings account” which allows users to earn interest on their stablecoins while providing liquidity to enable stablecoin swaps. These liquidity pools are among those from other decentralized swap platforms that also power the swaps which are integrated into the payment protocol. The stablecoin AMM models the original StableSwap protocol by Michael Egorov and is unique in that it is integrated into the payment solution, therefore unifying payments, savings accounts, and swaps under one decentralized product.