Coinbase has continued to lure developers into building various projects in its layer-2 network called Base. This time around, the leading crypto exchange in the United States is targeting creators of flatcoins, stablecoins that are not pegged to fiat currencies like the US dollar.
The company has promised to support the selected developers by offering strategic assistance and a grant issued from Base Ecosystem Fund.
Launched last month, Base is an Ethereum-scaling solution built in partnership with Optimism, a rollup-based scaling solution for Ethereum.
Notable Flatcoin Developers
Some of the popular projects that have built a flatcoin include Reflexer, Frax Finance, and Olympus DAO.
The Frax FPI stablecoin is pegged to various real-world consumer products as described by the US CPI (Consumer Price Inflation) average. This stablecoin returns equal yields to the twelve-month inflation rate in the United States by producing returns in proportion to the Consumer Price Index. As per CoinGecko’s data, FPI’s market cap currently stands at $82.1 million.
Sam Kazemain, the Frax Finance founder, wrote on the project’s official Telegram channel that the team was prepared to build the FPI stablecoin on Coinbase’s new network.
Similarly, Ameen Soleimani, the CEO of Reflexer, said the company was open to collaborating with Ethereum-layer 2 networks in order to bring the RAI stablecoin to new platforms like Base.
RAI is backed by ETH, and its market price is dependent on the demand and supply of ETH and RAI. Reflexer also employs a price stabilization technique. Defillama indicates that the total ETH deposited on the protocol to mint the stablecoin is worth $30.3 million as of this writing.
Olympus DAO Opens Talks With Coinbase
Further, the organization that spearheaded the wave of disruptive DeFi (Decentralized Finance) protocols in mid-2021, Olympus DAO, has also revealed that it is discussing with Coinbase to explore the possibility of deploying its OHM token on Base.
Wartull, an Olympus DAO contributor, has praised Coinbase’s move to support flatcoins, saying it was necessary after the deppeging of stablecoins like USDC two weeks ago.
When the first flatcoin lands on Base remains unclear.
