HOPE is the main stablecoin used in the DeFi Hope ecosystem, which aims to connect the traditional financial industry with crypto.
Former CEO Flex Yang of Babel Finance, a crypto lending company that collapsed in mid-2022, announced the launch of its own DeFi project called Hope.
HOPE is a decentralized stablecoin pegged to USD but backed by other cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH). The project says it will add other cryptocurrencies as collateral in the future, including possibly stablecoins.
HOPE is also the main coin used in the DeFi ecosystem of the same name, Hope, including the following products:
– HopeSwap: AMM-based decentralized exchange, providing a means for users to access HOPE;
– HopeConnect: a place that supports crypto derivatives trading on CEX exchanges without depositing assets
– HopeLend: lending service through liquidity pools;
– HopeEcho: create synthetic assets between crypto and real-life assets.
The confidence in CeFi is collapsing, and the calling for decentralization and crypto-nativeness has reached unprecedented levels.
Introducing $HOPEthe distributed #stablecoin backed by crypto-native reserves and an all-in-one DeFi ecosystem. https://t.co/QlMb0FVWn2
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— HOPE ️ (@hope_ecosystem) March 13, 2023
In addition, the Hope ecosystem also has a governance token called Light Token (LT), which incentivizes the provision of liquidity, and participates in voting on important issues of the protocol.
Stablecoin Hope was launched at a very sensitive time when the collapse of a traditional bank, Silicon Valley Bank, almost brought USDC, the second largest stablecoin in the cryptocurrency industry. However, the US government decided to intervene and promised that depositors would be fully compensated, helping USDC recover the peg on March 13.
Last week, it emerged that Hope would be used to cover the $766 million loss Babel Finance owes its customers. However, the launch announcement of this stablecoin does not mention anything about the lending company that the founder of the project once served as CEO.
Synthetic Kyptos
