The notable Venture Capital firm Goren Holm had earlier announced that the seed round funding of the Tezos Stablecoin Foundation has met with resounding success. The DeFi space is evolving and as a natural course, it is seeing immense competition among players who want to capture the maximum part of the pie. Many projects conduct seed rounds to fund their initiatives which can be majorly disruptive for the sector per se.
The Tezos Foundation and its partner organization are now seeking to bring in DeFi capabilities like stable coins and decentralized exchanges to the Tezos Blockchain. The DeFi sector, we all know is currently dominated by Ethereum, but Tezos is now trying to make the right moves that will help it attract users with lower fees and faster transactions. This has the potential of beating Ethereum in its fame!
The Tezos Stable technologies are a subsidiary of the Tezos stablecoin Foundation which is vested with the task of advancing DeFi development on the Tezos Blockchain. It conducted a seed round that it successfully executed today. The amount has not been disclosed as yet. The building of a new Tezos DeFi system will happen much on the lines of Ethereum and will compete against it.
The newly formed organization will support the progress and the propagation of USDtz stablecoins and will soon release its plans for a public sale of Trustee tokens (TRU). the holders of TRU will get a share of tokens from every new Tezos-based DeFi project launched. The best part is that a number of open-source projects are already in the line that also includes lending platforms and TEZEX, a DEX.
DeFi is growing from strength to strength with its total value locked already exceeding $10 billion. DeFi mostly is exclusively on the Ethereum blockchain and is heavily reliant on stablecoins that serve as a low-risk asset for hedging volatility. Even DeFi tools like loans are denominated in dollars.
Back in 2017, Tezos raised more than $230 million with the support of the accomplished investor Tim Draper. The fundraising was different in the sense that the bridge was closed with the second-largest crypto in terms of volume.
The procedure works as follows: On Tezos the nodes agree on the blockchain with a Delegated-Proof-of-Stake (DPoS) consensus. Here only the designated nodes can either generate or validate new blocks. If we observe this carefully, there is some sense of centralized control in such a system that hampers participation. This is a pure disadvantage compared to Ethereum’s planned new version which will have wider user participation due to its Proof-of-Stake design. Tezos can then upgrade several elements of its base protocol without the need to fork the blockchain.
In terms of transactions per second, Tezos can outperform Ethereum with 40TPS compared to 15 TPS of Ethereum. This will help Tezos to acquire many more users without rising fee, which has been the stickiest issue in Ethereum in recent months. Tezos sure has attracted a lot of attention both good and bad in recent weeks.