The Havven project, which recently launched the Nomin USD (NUSD) stablecoin, will also recreate its decentralized, dollar-pegged asset on the EOSIO decentralized operating system. NUSD is seen as an alternative to Tether (USDT), as well as similar coins seen as overly centralized.
“EOSIO has the scalability, transaction volume and growing DAPP ecosystem that fits with our vision, and we are thrilled to be joining the platform,” Havven’s founder Kain Warwick was quoted as saying at a press release on the outcome of a recent EOS hackathon in Sydney.
At the hackathon, Havven announced it intends to launch NUSD on the EOSIO blockchain and airdrop the token to EOSIO holders. The airdrop would decentralize the ownership of NUSD. The ERC-20 Ethereum-based version of NUSD was airdropped to owners of HAV tokens in July. HAV is the native token of the Havven project.
The airdrop distribution suggests that the NUSD token is not backed by US dollars in a bank. Instead, it uses a market principle to keep its USD peg. This makes the asset similar to BitUSD, which is supported by trading interventions, and is not backed by assets held in a bank.
However, this also means the NUSD token could only be used to hold fiat-like positions when trading crypto coins, while being unable to sell the token itself for dollars. In fact, very few traders seek to cash out through stable-priced coins, and instead prefer to use them as a temporary tool for acquiring more Bitcoin (BTC) through trades.
It would be trades and the willingness of traders to keep the peg that drives stability for NUSD - unlike USDT and TrueUSD (TUSD), which rely on cash held in a bank. According to the Havven project, this approach holds an unacceptable level of centralization.
The NUSD token already trades on KuCoin, and is spread throughout thousands of Ethereum-based addresses. Soon, the asset would also be available through the EOSIO network, creating numerous new pairs with increased liquidity. The launch of the EOSIO-based NUSD token may happen by the end of the year, as promised by the project. The NUSD token also resembles exchange coins, except that its price is not allowed to fluctuate. Additionally, the NUSD token would be used within the EOSIO economy, to perform in-app payments for a more intuitive dollar denomination.