Stablecoin Module For Customizable Blockchains Announced By Komodo

Blockchain startup Komodo has announced the testnet of its stablecoin module.

Komodo is a multi-chain architecture project that provides business-friendly blockchain solutions that are secure, scalable, interoperable, and adaptable. Komodo’s current technology suite, the Antara framework, offers tools for end-to-end blockchain development, including a customizable, application-specific Smart Chain complete with a library of built-in modules and an open API for building blockchain-based applications.

In a press release, Komodo announced the rollout of “Prices” and “Pegs” Antara Modules, which will allow Komodo Smart Chains to offer the creation of stablecoins, or cryptocurrencies that are tied to the price of external assets like the US dollar or even stocks.

The Prices Module provides data to a Komodo Smart Chain for blockchain-based enforcement by watching the price of an external asset.

“The Prices Module can request and record data about current exchange rates associated with these APIs’ resources, then transform that data into meta-data that is housed on a Komodo Smart Chai,” Komodo saiid. “This allows other Antara Modules, such as Pegs, to enforce blockchain activity based on the meta-data.”

The Pegs Module, on the other hand, manages and enforces the rate of exchange between any bitcoin protocol-based cryptocurrency and a stablecoin that is housed on a Komodo Smart Chain. The Pegs Module is utilizing a collateralized debt/loan system to allow users of a Smart Chain to transfer the value of a cryptocurrency such as bitcoin itself, or Komodo’s own KMD, into a stablecoin that is governed by the Smart Chain’s decentralized network.

“All stablecoins based on a Komodo Smart Chain will have the option to easily list the asset on AtomicDEX,” Komodo said. “If the value of the deposited bitcoin protocol-based cryptocurrency increases in value relative to the stablecoin, the depositing users have the option to withdraw additional stablecoins. Alternatively, if the value of the backing cryptocurrency decreases relative to the stablecoin, depositing users have the option to deposit more assets or to return some of the stablecoins they withdrew, in order to keep the value of their loan below the 80 percent threshold. If the user allows their level of debt to surpass the 80 percent threshold, the Pegs Module allows other users to step in and purchase the user’s outstanding debt. Depending on the circumstances, the purchasing users can acquire this debt at an immediate profit. All of the indebted user’s locked funds are liquidated in these events.”

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