Ethereum Classic Labs (ETC Labs), dedicated to accelerating the development of Ethereum Classic and supporting blockchain startups, has announced a collaboration with The Fantom Foundation, the non-profit behind Fantom, the open-source, modular platform for DLT products, to bring crypto-agnostic DeFi features to the Fantom ecosystem.
In particular, Fantom will use Xar Network, a DeFi-oriented public blockchain built using Fantom’s Lachesis and TxFlow consensus, as a more extensible analog to the popular Ethereum lending platform MakerDAO.
“We’re collaborating with the ETC Labs to bring DeFi, including all aspects of our tech stack (e.g., stablecoins, lending, staking, asset issuance, collateralization, etc.) to the Xar ecosystem.”
– Michael Chen, CMO of The Fantom Foundation
As part of the collaboration, users can leverage the Ethereum Classic token (ETC) as collateral to mint a stablecoin on the Fantom platform akin to MakerDAO’s Dai on Ethereum. However, Xar Network’s specific design enables agnostic issuance of collateralized stablecoins outside of ETC, including any supported Collateralized Stable Currency Tokens (CSCTs) on the network.
ETC will operate as the collateral for customized CSCT issuance by corporations, central banks, and other financial institutions on Xar Network. Issuing entities can maintain complete control over the underlying collateral (ETC), and even stake the corresponding CSCT to generate rewards in a stablecoin based on the fee pool from Xar Network.
Xar Network is a blossoming framework for DeFi on Fantom and Cosmos, which is rapidly building out some intriguing DeFi tools. Some of its open-source modules include collateralized loans, collateralized index tokens, liquidity pools, synthetic swaps, and protocol-level atomic swaps. Xar is even compatible with Ethereum’s ERC-20 token standard and Binance Chain’s rising BEP-2 model.
Xar’s capabilities for DeFi are inextricably linked to Fantom’s open-source consensus modules — Lachesis and TxFlow. Fantom’s focus is to encourage the launch of DLT-related products using its high-performance and secure consensus mechanism, which Xar deploys for the decentralized validation of transactions that competes with centralized legacy counterparts in finance.
Moving forward, the collaboration between Fantom and the ETC Labs will expand the features and uses for the ETC token within the Xar and broader Fantom ecosystem. Fantom’s toolkit empowers developers to deploy and tailor blockchain networks with interoperability amongst each other and networks like Cosmos. For ETC, such collaboration can help increase the token’s liquidity and use in DeFi products across a spectrum of networks.