ETC Labs and Fantom Foundation work together to bring decentralized financing (DeFi) to the Fantom ecosystem, a February. 10 press release announced. Ethereum Classic (ETC) will serve as collateral for issuing a stablecoin similar to the DAI of Maker on the Fantom platform.
Fantom will use the Xar Network, a DeFi framework that has been specifically developed for the project. The framework uses a number of Fantom’s Byzantine Fault Tolerant (BFT) consensus technologies, such as Lachesis and TxFlow, to provide a blockchain environment that supports advanced DeFi options. The system makes collateral loans, synthetic assets, atomic swaps possible and is interoperable with external block chains such as Ethereum and Binance Chain.
Ethereum Classic only functions as collateral on the Fantom platform. The stablecoins will live on Xar Network’s blockchain agnostic stablecoin protocol, called Collateralized Stable Currency Tokens (CSCT).
Fantom focuses primarily on enterprise and government use applications, using ETC to store stable currencies on networks that require permission.
The issuing entities will retain full control over the collateral and, in addition, have the option of earning interest by using the stablecoin.
Allegedly, ETC is preferred to its better-known twins because of its dedication to immutability, because it was born of the unwillingness to manually restore the results of a smart contract hack.
The collaboration will gradually expand the available use for ETC within the Fantom ecosystem. The toolkit ensures considerable interoperability between different Fantom block chains, as well as those on the Cosmos network.
Although Ethereum Classic can also host DeFi platforms in theory, its role seems to be relegated to that of collateral. For now.