cryptonews: Crypto lender Babel Finance is hoping to dig itself out of a $766 million hole caused by what the firm says were steep losses due to risky trades by embarking on a stablecoin-centered DeFi project.
Babel's hopes are centered on the HOPE stablecoin, which will be used on decentralized finance platforms like HopeSwap, a decentralized exchange modeled on Uniswap, and a peer-to-peer lending platform.
Initially backed by a reserve of BTC and ETH, HOPE will rely on market makers and arbitrage traders selling HOPE at a premium when there is more demand for newly minted stablecoins and buying it at a discount when there is less demand and burning tokens. Ever since Terra's collapse, governments have been pushing for stablecoins to be backed 100% by cash or near-cash investments like short term U.S Treasury Bonds. That has been a theme of U.S. stablecoin regulation talks that are expected to come to fruition this year.Babel has applied for a new six-month moratorium application holding off creditors, it said in a release Monday.
Like many other centralized crypto lenders crushed by the crypto winter — a fair chunk of which can be traced back to losses suffered because of the terra/LUNA collapse — Babel is hoping it can dig itself out.I'm an NYC-based journalist covering crypto and business.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Babel Finance Mulls Crypto-Backed Stablecoin to Repay $766M: ReportHong Kong lender BabelFinance is reportedly looking to roll out a crypto-backed stablecoin and DeFi platform as it hopes to repay $766 million in creditor debt. By oknightcrypto.
Read more »
Bitcoin and Ether rise despite Silvergate suspending its crypto payments network: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Caitlin Long, founder and CEO of Custodia Bank, which aims to bridge traditional finance and digital assets, discusses the uncertainty at Silvergate Bank.
Read more »
Last Week on Crypto Twitter: Crypto Singing Its Last Song | CoinMarketCap🔹Surviving the Bear Market 🔹Elon building Twitter 🔹Our favorite 'Coinfession' & more memes and talks this past week on crypto Twitter 😉
Read more »
Crypto traders may lean toward stablecoins after Silvergate ceases crypto payments networkCrypto traders are likely to lean more toward dollar-pegged stablecoins, after Silvergate Capital Corp., and its crypto-friendly lending affiliate, said last...
Read more »
Babel wants to repay creditors via special ‘recovery coins’: ReportBabel Finance, one of cryptocurrency lending firms shaken by the bear market of 2022, is exploring new restructuring opportunities involving minting a new stablecoin called Hope.
Read more »
Lido Finance Now Holds 33% of All Staked Ethereum (ETH): DetailsLido Finance dominates 33% of all Staked Ethereum (ETH), here's what it means ETH LSD DeFi Investment stETH Blockchain
Read more »