The Bitcoin-stuned Musd Stablecoin comes to Bitcoin’s favorite Native Perpdex platform Velar in a movement that promises to be an important milestone, because the world’s oldest cryptocurrency evolves into a yield-bearing assets such as Eth and Sol.
Velar said that it works together with Musd emittent Mezo to bring the assets to his Percdex platform, using the TBTC Bridge infrastructure to facilitate transfers of the stimulated test network of Mezo, known as MatsNet.
If you are not familiar with Musd, you may want to get to know this new actively, which is said to be the first decentralized Stablecoin that is completely collateral with BTC. For Mint Musd, users have to deposit BTC who are worth at least 110% of the amount of stablecoins that they borrow, and they must maintain this relationship at all times to prevent liquidation of their loan. This overcollatralization is the key to how Musd is 1: 1 PEG with the US dollar.
The advantage of Musd is that the collateralization process is fully decentralized, so users always retain full control over their deposited bitcoin, in-line with the core principles of Satoshi Nakamoto. It is a new design with which investors can use their bitcoin to mint defi-compatible assets that can be used in yield-generating activities with lower risks.
“Mezo’s Musd dissolves the problem of storage risk on associated with most BTC-supported Stablecoins,” explained Velar’s CEO Mithil Thakore.
The commitment to Velar means that Musd will probably become much more important in the emerging Defi Ecosystem of Bitcoin. Velar is one of the most important Bitcoin liquidity protocols, whereby his Perpdex enables traders to buy and sell continuous contracts, so that both long and short positions are used for multiple digital assets, including BTC itself.
The exact date has not been announced, but the plan is that Musd is launching at Velar somewhere in the second quarter. As soon as it is launched, Velar is planning to make several Musd traders to increase accessibility for the Stablecoin, which will be useful, including trade, borrowing and also liquidity facility. However, that is just the beginning, because Velar has plans to add support for even more use cases for Musd later this year.
“The integration of it in the Perpdex of Velar will enable users to enjoy more capital efficiency and offer greater freedom of choice when choosing a stablecoin to serve as a margin for their Perps trading activities,” Thakore added.
