New proposal could allow holders of DOGE,XRP, LTC to create ‘stable tokens’ on Flare soon

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Trustline, a California-based credit network, plans to release a new stablecoin that will be deployed on the Flare network and posted on the XRP Ledger. The new crypto-stablecoin named Aurei would be glued to the U.S. dollar, according to a proposal posted by Trusline.

According to the aforementioned plan, Aurei will be minted via a smart contract after cryptocurrency collateral is deposited into the ‘Probity Vault’ – basically a smart contract mechanism responsible for minting Aurei and conducting loans on behalf of the depositors. Its price stability mechanism will include a floating interest rate, competitive devaluation and revaluation, and a governance structure that will enable TCN (Trustline Credit Network Token) holders to vote on certain parameters.

The collateralization ratio would be 1.5:1 or 150 percent, which means that if FXRP (XRP on Flare) is approved as collateral, users will need a minimum of $150 FXRP in their vaults to borrow $100 worth of Aurei.

Flare Networks welcomed the growth, with the platform tweeting,,

“This would allow any integrated coin currently XRP, LTC and Doge holders to trustlessly create a stable token.”

When Flare Networks first announced the creation of its public network, the community was delighted by the new platform’s ability to incorporate the Ethereum Virtual Machine (EVM) and to use a layered protocol to allow the insecure release and redemption of the XRP on Flare (FXRP) instead of token-based protection.

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Flare revealed Litecoin and Dogecoin integrations only last month. It should be noted, however, that the integration of the latter was met by a great deal of scepticism, some of which accused the project of not being serious enough, because DOGE is a “meme-coin.”

However, following its latest growth, Flare Networks will now also have a stablecoin on its network.

Many users reacted with optimism to the news of the proposed stablecoin launch, especially with regard to its effect on DEX trading. According to others, this will remove the need for IOUs to be shared or to go through their withdrawal processes.

Trustline is a peer-to-peer credit network, and its flagship product, the Trustline app, is run entirely on the XRP ledger. It is worth noting here that the company has not yet announced when stablecoin will be released, and that Ripple executives have yet to comment on this development as well.

 

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