Circle to Launch USD Stablecoin

Owner of Poloniex exchange told that the USDC was developed with the help of the CENTRE consortium
27 September 2018   756

Circle, which owns the Poloniex exchange, announced the launch of a tokenized USD Coin (USDC). Soon USDC will appear on a number of crypto exchanges, including decentralized sites, and will also be supported by many other projects.

Circle said that the USDC was developed with the help of the CENTRE consortium and is intended to become a way of easy transfer of tokenized dollars in public blockchains.

Individuals and organizations can use this service for deposits in US dollars from bank accounts and convert them into USDC. Also, these tokens can be withdrawn back to bank accounts.

Initially USDC will be available at Poloniex, after which they will also be added to DigiFinex, CoinEx, KuCoin, OKCoin, Coinplug, XDAEX and other trading platforms.

Also, the company pays attention to the importance of trading protocols, as the exchange of currencies, goods or assets in a non-credible way is what many projects will soon want to get by default.

In this connection, Circle highlights several examples of using USD // Coin at the protocol level. For example, the Kyber Network, decentralized trading platforms DEX, Paradex, Radar Relay and Tokenlon, as well as the Dharma platform, where the support for USDC will soon appear.

Stablecoins, especially ones that provide fiat rails, are a critical piece of infrastructure in the decentralized ecosystem. We're excited by Circle and CENTRE’s efforts to create a transparent, fiat-backed project that provides a bridge between traditional finance and the open financial system of the future.
 

Ron Bernstein
General Manager, Paradex

Future partners of USD Coin are :

  • Origin Protocol
  • BlockFi
  • MoneyToken
  • BitPay
  • FOTA
  • Melonport
  • Centrifuge

In addition, CENTRE declares its intention to make every effort to ensure the security of the use of the USDC and partnership with the blockchain-oriented, AML-compliant and risk-based companies, including Chainalysis, Elliptic, Coinfirm and Coral.

Additionally, it is stated that such wallet providers as BitGo, Cobo, Coinbase Wallet, CoolWallet S, Elph, imToken, Ledger, Status and Trust will provide native USDC support.

Circle announced the release of its own stablecoin in May after the close of the E-series financing round for $ 110 million.

Poloniex Marginal Lenders Lost $14m Due to CLAM Crash

CLAM lost 77% of its price in just an hour, leading to this horrible consequences
07 June 2019   347

The American cryptocurrency exchange Poloniex reported that financed margin trading users lost 1800 BTC (about $ 14 million at the current exchange rate) due to a sharp drop in the CLAM rate and extremely low liquidity of this coin.

On May 26, a sudden, severe price crash in the CLAM market caused a number of margin loans to default, resulting in a roughly 1800 BTC loss in the Poloniex BTC margin lending pool for non-US customers. Today, we recognized the generalized loss across lenders in the BTC margin lending pool. As a result, the principal of all active BTC loans as of 14:00 UTC today has been reduced by 16.202%. This impacted 0.4% of Polo users.
 

Poloniex Team

According to the representatives of the exchange, on May 26, the so-called Flash crash of the CLAM (228th place by market capitalization) occurred, as a result of which the coin fell by 77% in less than an hour. 

Rate collapse caused a wave of liquidations designed to reduce losses and repay loans to lenders. Poloniex claims that 0.4% of the total number of users of the exchange suffered, and the volume of the marginal lending pool decreased by 16.202%.

CLAM Price Chart
CLAM Price Chart

First, the velocity of the crash and the lack of liquidity in the CLAM market made it impossible for all of the automatic liquidations of CLAM margin positions to process as they normally would in a liquid market. In addition, a significant amount of the total loan value was collateralized in CLAM, so both the borrowers’ positions and their collateral lost most of their value simultaneously. As a result, some borrowers were unable to repay their loans with the digital assets they held on Poloniex.
 

Poloniex Team

Also, the company said that as long as borrowers do not repay the specified cost, their accounts will be frozen. The very same stock exchange promised creditors to return their funds as soon as she manages to pay damages.

Lenders impacted will see the reduction in their accounts when they next log in.
 

Poloniex Team

To avoid such losses in the future, the exchange will remove the assets of BTS, CLAM, FCT and MAID from the marginal section. In addition, additional measures will be introduced to monitor risks when trading with borrowed funds, as well as measures to prevent strong price slippage and excessive concentration of marginal positions.