Following the Terra stablecoin collapse last May, the Terra blockchain ecosystem has another stablecoin concept in the works called “Solid.” The stablecoin Solid and its white paper were revealed by a decentralized finance (defi) project, Capapult Finance, and the idea has been dubbed a “soft-pegged stablecoin” built on Terra.
Terra Blockchain Ecosystem to See a New Stablecoin Called Solid
Roughly five months ago, the crypto community experienced some dark days when the stablecoin terrausd (UST), now called terraclassicusd (USTC), depegged from its $1 parity. Today, USTC is changing hands for $0.03 per unit and the obliterated Terra blockchain ecosystem moved to a new network called the Phoenix blockchain.
With the Terra 2.0 network launch, the crypto community was introduced to a new native crypto called terra (LUNA) 2.0. Following the stablecoin depegging incident, which wreaked havoc across the entire crypto economy, a defi project called Capapult Finance says it plans to launch a new “soft-pegged stablecoin” built on top of the Terra network called “Solid.” The stablecoin concept was revealed in a white paper called “Solid, a Soft-Pegged Stablecoin on Terra.”
The project’s white paper describes Solid as an “over-collateralized and fully decentralized soft-pegged stablecoin on Terra.” Unlike the original Terra blockchain white paper co-authored by Do Kwon, the authors of the Solid white paper are represented by the six alpha-numeric digits of two addresses — “0x7183, 3A2k4j.”
The white paper published on Oct. 19, 2022, stresses that there’s a need for stable assets in the world of defi, but fiat-backed stablecoins don’t cut it, according to the white paper’s authors. “Fiat-backed stablecoins are not in the owners’ control, as was showcased by the Tornado Cash ban,” the white paper notes. The stablecoin’s paper, hosted on the Capapult Finance website, adds:
Thus, to make…
