Unitas Protocol Goes Live on Ethereum Mainnet: Mint Unitized Stablecoins with USDT
TAIPEI, Aug. 1, 2023 /PRNewswire/ -- Unitas Foundation announced that Unitas Protocol mainnet is live on 31 July.
Unitas Protocol is the first DeFi protocol offering unitized stablecoins, a new stablecoin category that functions as Units of Account for different emerging market currencies. It mitigates emerging market dollar shortages by opening access to global USD liquidity for businesses and individuals needing safe and affordable cross-border transactions.
Unitas Protocol allows anyone to mint unitized stablecoins with USDT. It "unitizes" a USD stablecoin (e.g., USDT) into one local currency unit.
The first unitized stablecoins open to minting are USD91 (INR-pegged), USD971 (AED-pegged), USD84 (VND-pegged), and USD1 (USD-pegged). Unitas' naming convention prefixes its stablecoin names with the Store of Value (e.g., "USD") and suffixes them with country codes (e.g., "91" for INR) that indicate Units of Account of emerging market currencies.
A unitized stablecoin reflects the value of one unit of emerging market currency (e.g., INR) denominated in some USD stablecoin (e.g., USDT).
"Today is a significant milestone for Unitas and the global financial and digital asset ecosystems," said Wayne Huang, co-founder and board member of Unitas Foundation. "Unitas Protocol unlocks stablecoin real-world business and individual applications."
As emerging market small medium enterprises (SMEs) continue to face US Dollar liquidity shortages, stablecoins pegged to USD (especially USDT) have been widely adopted among merchants, importers and exporters in their domestic and cross-border transactions.
Despite USD stablecoins' convenience, each country has its sovereign currency unit that is the primary denomination in domestic quotations, transactions, and communication. Unitized stablecoins bridge this gap by providing users with guaranteed, on-chain USD liquidity while still allowing them to quote, transact, and communicate using their respective countries' primary Units of Account.
Currently, an Indian importer must buy USDT with INR cash via a peer-to-peer transaction and pay the USDT to its supplier. The importer then sells its received goods to local distributors and gets paid in INR cash. The exchange rate, profit, and cost calculations are always complicated.
USD91 solves this by maintaining competitive rates and guaranteeing USD stablecoin (e.g., USDT) liquidity, which is over-reserved on-chain for anyone to audit. The same solution framework applies to USD stablecoin liquidity in countries such as Vietnam (via USD84) and UAE (via USD971).
In short, while holding a unitized stablecoin (e.g., USD91) is equivalent to holding a USD stablecoin (e.g., USDT), unitized stablecoins enable local currency-denominated, stablecoin-based transactions that allow more straightforward quotation and communication in users' familiar Units of Account.
Unitas Protocol is essentially a value translator between USD and other currencies and guarantees that its stablecoin can unconditionally convert back to a USD stablecoin. With unitized stablecoins, each country can have its own best version of USDT, acting as a common denomination for all kinds of transactions.
About Unitas Foundation
Unitas Foundation is a non-profit organization founded in 2022. Unitas Protocol operates exogenously over-reserved stablecoins pegged to emerging market currencies. These stablecoins unleash emerging market potentials by facilitating foreign investment, cross-border payment, global market access, DeFi participation, efficient USD liquidity, and more.
To learn more about Unitas Foundation, visit its official website (https://unitas.foundation), Wiki, Telegram, Twitter, blog, or email team@unitas.foundation.
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Disclaimer:
- The press release is only for informative purposes. It does not solicit funds, constitute contractual offers or promises, or proffer any legal, investment, or tax advice. Please seek a licensed professional's support to address your particular situation should you need any professional advice.
- Unitized stablecoin is an experiment intended to be a decentralized financial tool. For the avoidance of doubt, crypto assets and stablecoins involved within the Protocol are not insured or audited by any third party, licensed or endorsed by any regulatory authority. Thus, the unitized stablecoin is subject to various risks, including but not limited to, liquidity risk, cybersecurity risk, regulatory risk, transactional risk, and human error risk. Please do your own research before participating in the Protocol. You can find more information at unitas.foundation
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