With the current growth of the Decentralized Finance (DeFi) space, it is pretty difficult to imagine a crypto world without DeFi. At the time of writing this line, there were over 500 DeFi protocols in the market, and the number is expected to rise as the DeFi space continues to flourish. Most of these projects aim to address the shortcomings of the traditional financial system while providing multiple earning opportunities for users.
But since cryptocurrencies are volatile and fiat currencies are unequal, DeFi users and Forex traders need protection against market risks as they try to optimize their profits. Sadly though, only a handful of DeFi projects offer such solutions.
However, a new DeFi protocol has emerged to disrupt the traditional financial system and stabilize fiat currencies to protect and provide complete decentralization to users.
What is Blindex?
Blindex is a leading multi-currency stablecoin DeFi platform that seeks to stabilize global fiat currencies in its quest to completely decentralize traditional financial systems. The open-source protocol aims to become the future of Forex and the first multi-currency fractional-algorithmic stablecoin protocol.
The project is committed to providing global users with access to a trusted financial management platform that is fully decentralized. It has combined several innovative and familiar concepts to develop its one-of-a-kind ecosystem.
The protocol aims to create a set of stablecoins known as BD-Stables equipped with several inherent technical capabilities. The stablecoin design employed by Blindex was derived from the Frax protocol, the very first fractional-algorithmic stablecoin protocol.
How Does it Work?
The BD-Stables tokens will be fully decentralized and partially collateralized, accepting only BTC and ETH as collateral. The protocol also intends to stabilize the prices of BD-Stables using specialized algorithms. These tokens are designed to meet the specific needs of users despite their geographic location.
The BD-Stables are pegged to their underlying fiat currency equivalents and allow users from anywhere in the world to mint, redeem, swap, trade, and invest without being directly exposed to the currency when getting in or out of a trade. Some examples of these tokens are the BDUS stablecoin – pegged to the USD, BDAU stablecoin – pegged to the Australian dollar, and many more.
Features of Blindex
The platform offers features that make it appealing to investors, some of which include:
This is one of the major selling points of the Blindex protocol, as all of its stablecoin solutions are completely disconnected from all centralized stablecoins. This makes it impossible for the protocol to be censored, blacklisted, or affected by any centralized authority.
- Multi-currency Offering
Blindex lives up to its name by being currency-blind. The protocol views every currency as equal, both fiat and digital currencies. This currency-blindness makes it able to allow anyone from anywhere in the world to enjoy financial freedom without the risk of exposure to currency price fluctuations.
- True Decentralization
Blindex is creating an ecosystem that is governed by the core principles of decentralization. Its stablecoins and infrastructural processes are completely decentralized. The tokens can only be collateralized with BTC and ETH.
The BDX Token
Apart from the BD-Stables tokens, Blindex also has another token dubbed BDX, which is the protocol’s native cryptocurrency. BXD is the volatile, unstable utility token that powers the protocol.
The BDX token holds governance rights in the Blindex ecosystem. BDX holders can stake the tokens to obtain voting rights on key decisions that can affect the future of the project. Token holders can make suggestions on which new fiat currency to tokenize. This takes decision-making power away from Blindex developers and puts it in the hands of the Blindex community, fostering decentralization.
In addition to voting rights, the BDX token performs other utility functions such as adjusting transaction fees, adding and adjusting collateral pools, providing discounts on the collateral rate.
The Blindex team has designed BDX to possess some of the innate properties of Bitcoin. The token’s total supply is set to 21 million BDX at genesis. However, the token is designed to be deflationary in supply as the BD-Stables are minted at higher algorithmic ratios, and their demand grows.
The Blindex Roadmap
The protocol is working toward developing a 100% decentralized and stable alternative to traditional financial systems. To do this, Blindex has outlined different phases of its development.
The first phase is to establish multiple fiat currency-pegged stablecoins, which it has managed to do. The protocol intends to continue adding more stablecoins to its platform. Next, it has provided users with liquidity and several other utility maximization features, including swapping the BDX token and earning fees.
Blindex just recently launched on the RSK blockchain network, a move that is one of the first strategic steps to actualizing its goal. The protocol intends to add extra tools that will allow users to earn interest and borrow against their assets across multiple blockchain networks.
Ultimately, Blindex plans to go beyond just tokenizing currencies. It intends to tokenize everything.