Despite the tensions faced by cryptocurrency exchanges, American publicly traded company Coinbase has encouraged builders working on Base, its new L2 protocol to focus on building flatcoins – an inflation-tracking stablecoin that will enable stability amongst users who intend to purchase power.
According to a release, the cryptocurrency exchange revealed the importance of developing and exploring flatcoins on its network. Throwing more light on the development, Coinbase specifically wrote “We are interested in flatcoins that track the rate of inflation, enabling users to have stability while having resiliency from the economic uncertainty caused by the financial system”.
Furthermore, the exchange revealed that the idea to tie assets to the inflation rate is to allow them to retain their value over time.
This solution will certainly be useful to users who are reluctant in storing their assets in local currencies in countries prone to inflation. Rather than being equally pegged to fiat currency like the US dollar, flatcoins will be pegged to the price of living using tracking consumer price index and inflation data.
Coinbase Woos Developers to Build on Base
Recall that last month Coinbase launched Base, a layer2 blockchain designed to scale transactions on the Ethereum (ETH) network. Since the launch of the Base Network, the American exchange is looking to develop projects to onboard the next 1 billion users on-chain.
Aside from the need for flatcoins, the exchange also highlighted other critical innovations that should be built on its layer-2 network Base. The areas include Onchain reputation, which will establish on-chain trust amongst users, Onchain Limit Order Book (LOB) exchange, and better tools that will enable the safety of the Decentralized Finance (DeFi) ecosystem.
By enabling developers to build the unique stablecoin offering, the U.S.-based leading exchange platform is contributing to the creation of a more friendly and secure financial ecosystem. Owing to its high throughput, the network affords developers the opportunity to design new mechanisms for spot trading, limit orders, and perpetual amongst others.
Meanwhile, the platform recently announced plans to launch a derivative trading platform overseas that allows the trade of perpetual swaps linked to cryptocurrencies. The exchange CEO, Brian Armstrong has described the SEC’s Notice against his firm will endanger the development of the US financial systems and technology.
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