Grizzly.fi, a DeFi company, is innovating by launching a stablecoin pegged to the safest currency in the world.
The Swiss Franc is generally considered the safest currency in the world, and investors see it as a safe-haven asset in turbulent times. High inflation is increasing costs of living and squeezing living standards worldwide. With current inflation rates and commotion regarding stablecoins, investors are looking for safe alternatives to leave their digital assets in.
The DeFi Franc or DCHF will be the second product launched by the Grizzly.fi in a short time. The company launched their Liquidity Mining Aggregator only 2 weeks ago, which became the biggest launch on the Binance Smart Chain in history, with $26.5M collected within only three days. (By 6 times)
The announcement was by the company on its Twitter page on Wednesday, stating:
“We hope to drive innovation by providing investors with an inflation proof stablecoin pegged to the Swiss Franc. With a strong economy, low debt, and sizeable foreign investment, the currency is an appealing alternative to USD pegged stablecoins”
According to reports the DCHF will be an Ethereum-based stablecoin backed by ETH and WBTC. Users will be able to obtain the token through its own borrowing platform, where you can deposit collateral to borrow DCHF against a 0% interest rate.
The platform will allow you to borrow at a minimum collateral ratio of 110%, which comes down to a loan-to-value ratio of 90.09%. This makes borrowing highly capital efficient and allows for up to 11x leverage on your investments.
“The DeFi space offers many amazing opportunities to generate yield on your assets. However, many people don’t feel comfortable selling their positions to participate in them. The DCHF will give you the chance to hold on to your long term ETH and BTC positions, while also being able to invest in attractive yield generating opportunities”
Oliver stated that they are working towards a broader vision of becoming the go-to place in DeFi to generate yield on your Digital Assets.
Grizzly.fi and the DCHF will be combined to offer leverage into Grizzly.fi liquidity pools. Essentially, this will allow people to use leverage on stablecoin pools with almost no risk involved.
The only platform that has done something similar in the past was Abracadabra Finance, this helped their TVL grow to a whopping $6 billion. In addition, their SPELL token reached a market cap of $4 billion.
Getting these mechanisms in place and combining their products is definitely a step in the right direction for this team. If it is successful, we can expect some explosive growth from this innovation driven company.