Cryptocurrencies have revolutionized the financial system with the introduction of decentralized payment networks that goes beyond borders. The crypto space continues to expand and has given rise to a new concept called decentralized finance (DeFi).

The DeFi sector aims to provide financial services previously deemed unthinkable on the blockchain. Imagine a global and open alternative for all the financial services (savings, loans, trading, insurance, etc) accessible to anyone with a smartphone and an internet connection.

DeFi applications range from loan platforms, predictive markets, decentralized exchanges (DEX), stable cryptocurrencies (stablecoins) and even tokenized stocks. The common element that all these initiatives share is to incorporate traditional financial services in a blockchain, thus recording each of their operations in the history of the network.

For DeFi products to successfully displace traditional financial products, the underlying smart contract must possess certain qualities. This includes fast confirmation times, low transaction fees and scalability.

One of the blockchain platforms that aims to build an ecosystem that offers these features is IOST. The enterprise-grade blockchain network is integrated with the Proof-of-Believability consensus that offers interesting features for the decentralized finance sector.

Integration of HUSD Stablecoin

As one of the many milestones that the IOST team plans to achieve in 2021  the blockchain platform will be integrating popular stablecoin HUSD on its blockchain network. The stablecoin issued by fintech company Stable Universal is pegged to the US dollar.

This development means that IOST becomes the second platform to host the HUSD stablecoin outside Ethereum which is the blockchain that the stablecoin was initially deployed on.

According to IOST, the integration of HUSD is at its final stage of completion and once deployed, users will be able to deposit U.S dollars in their accounts and exchange for HUSD at a 1:1 ratio to their preferred crypto wallets.

HUSD will also offer IOST users access to a safe, secure and convenient asset for remittance, commerce, payments, trading and other financial services. IOST also intends to use the stable coin as an important asset in its DeFi landscape.

HUSD stablecoin would be used as a payment token and a bridge between fiat and crypto assets within the IOST DeFi space. In addition, the stablecoin will be used as a form of price control to reduce the volatility that is associated with the crypto markets.

IOST Building A Highly Scalable DeFi Ecosystem

IOST has set its sights towards building a solid blockchain infrastructure that offers development teams, creators and institutions with the tools to build DeFi applications with the potential to grow the blockchain space.

The blockchain platform was one of the few that had been developing DeFi products before the 2020 boom. In May 2019, IOST launched its first DeFi app, the HunterCoin mining pool which quickly exceeded 8 million IOST within 24 hours.

The launch was preceded by the optimization of a decentralized staking system that paved the way for future developments in the DeFi sector. With scalability on the forefront of IOST, it has continued to adjust its roadmap with new milestones aimed at gaining inroads into the defi space.

Unlike some competitors within the blockchain space, IOST is well optimized towards handling large transactions on its blockchain. Ethereum, the current leading smart contract network for DeFi products, has a block time of 15 seconds and its transaction per second is 20.

Unsurprisingly the increase in DeFi products on the Ethereum network has caused congestions and scalability problems. IOST has a block time of 0.5 secs and a TPS of up to 8,000 making it one of the highly scalable blockchain platforms in the blockchain sector. 

Furthermore, the blockchain platform is regarded as one of the most decentralized ones in the blockchain sector. IOST has an unlimited number of nodes that can be block producing as long as they meet the qualifying criteria to be eligible.

IOST is also developer friendly and uses the popular Javascript language familiar among core developers. This means that developers can easily create products within its blockchain system. Also the blockchain platform provides an ideal environment for DeFi products with its highly scalable blockchain, no transaction fees and easy account names.

Partnerships Key towards Achieving Adoption In DeFi Space

One area where IOST has been active in establishing its influence in the DeFi sector is via partnerships and collaboration. Interoperability is a key aspect of decentralized finance and IOST has worked towards developing products that increase interoperability qualities on its blockchain network.

IOST has also committed financial resources towards promoting the development of DeFi products on its platform. In August, IOST unveiled a million dollar DeFi fund called ‘’Noah Oracle Fund’’ that aims to promote the development and growth of DeFi projects.

The DeFi fund according to IOST would be utilized in incubating outstanding projects with high potentials. Earlier in June 2020, IOST collaborated with Polkadot Parachain Bifrost to improve its interoperability functions with the aim of launching cross-chain defi platforms.

Later that month, IOST revealed the launch of PowerDeFi a cross-chain app that supports the popular DEX UniSwap. The launch of the dApp enabled IOST users to partake in staking and lending popular ERC-20 defi tokens.

To further provide users with accurate prices and off-chain data, IOST collaborated with leading oracles provider Chainlink. With data from Chainlink, DeFi developers can build cross-chain applications on IOST with transparent and accurate off-chain data on their smart contracts.

On the regulation front, IOST is regarded as one of the best blockchain that is regulatory compliant. IOST is considered the 29th compliant token in Japan which is a major milestone out of the over 5000 tokens in the crypto market. 

Also the blockchain platform is the first and only blockchain project invited by the Chinese government to present a lecture to industry leaders in the Great Hall of the People. In addition, IOST was also invited by an Indonesia Ministry of Finance governed-entity to be legally traded in Indonesia.

This makes it the right blockchain platform for DeFi and crypto adoption.

In conclusion

IOST has created an innovative blockchain platform by tackling the problems of ETH and EOS once and for all. Being inherently a latecomer than ETH, EOS, and Tron might have put IOST in a huge disadvantage in securing partners and gaining recognition within the blockchain industry. Against all odds, IOST is the one to watch and is an underdog in this long-term competition with its excellent stability and completeness. With HUSD’s joining of IOST Ecosystem, investors can expect more adoption and expansion DeFi scenarios with IOST.

To learn more about IOST, visit the website and Medium page for more information on the blockchain project.



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