How to Create a Stablecoin on XDC Network

Stablecoins are the cryptocurrencies whose value is pegged to a traditional currency, another crypto, or a commodity; as a result, their price is stable in nature. Because of the capabilities of stablecoins to flourish in the global market, we have seen the demand for stablecoin development explode in the last couple of years. The stablecoin supply grew from $29 billion to $165 billion between January 2021-2022 which amounts to a six-fold increase.

Problems with existing stablecoins

Recently, we witnessed the “death spiral” of UST, the algorithmic dollar stablecoin of the Terra Luna network. Because of the way it was designed, UST lost its dollar peg and is currently trading at $0.08. Just like UST, the existing stablecoins suffer from drawbacks like:

1) Collateral backing of the stablecoin is questioned again and again

2) Crypto backed coins are not capital efficient and more

XinFin XDC Network is an enterprise-grade hybrid blockchain dedicated to the development of stablecoins. Offering a platform to develop stablecoins that offer low volatility against the world’s major fiat currencies, XDC Network unlocks the benefits of blockchain technology to investors and also lowers the cost of creating a stablecoin.

How to create a Stablecoin on XDC Network?

XDC Network is designed to make stablecoin development easy and quick. XDC offers two kinds of networks:

1) XDC main network

2) XDC Apothem network

For stablecoin development, you need to consider the following things:

• Enter the basic token information

Select the network of your preference for stablecoin development. You can choose XDC Mainnet or XDC Apothem Testnet. Next, you need to decide upon details like:

1) Token name

2) Token Symbol

3) Number of decimal places to be used

4) Description of the token

• Set up the tokenomics

Choose an appropriate initial supply and limit of your stablecoin.

• Add features of stablecoin

You need to choose additional features for the stablecoin that will be automatically added to your smart contract. These are

1) Pausable

This programs the smart contract to pause the tokens and operations related to it.

2) Burnable

This specifies that the token can be burned to decrease the circulating supply.

3) Mintable

This specifies that more tokens can be minted or added to increase the initial supply specified in Step3.

Why choose XDC Network for creating a stablecoin?

As an enterprise-grade hybrid blockchain, the XDC network has established itself as a high liquidity interoperable blockchain. Working on a Delegated Proof of Stake Consensus (XDPoS), it ensures fast tokenization and fast settlement of transactions. For stablecoin development, XDC Network offers the following advantages:

• Offers high throughput

In comparison to the Ethereum network, XDC Network offers high TPS. At present Ethereum Network offers 12 – 16 TPS while XinFin XDC Network offers a throughput of 2000+ TPS. This ensures the transactions don’t face any congestion and transactional inefficiency.

• Transaction Finality

The transaction finality of Ethereum blockchain is 10-20 seconds while on the XDC network it takes only 2 seconds to confirm a transaction.

• Low-transaction fees

As compared to the other platforms like Bitcoin and Ethereum, the XDC network fees is quite low. The average transaction fee of Ethereum network is close to $10 while for the XDC Network it is $0.00001.

Conclusion

It is evident from the stats that the XDC Network offers an efficient blockchain network for development of smart contracts that support stablecoin development. By offering a low-cost high-speed network, XDC Network ensures the investors always experience the best transactional efficiency without you having to write a single line of code.

If you are looking for stablecoin development services, your search ends at Antier Solutions as we offer end-to-end consultation and development services under one roof. Whether you need a commodity-backed stablecoin, such as a gold-backed stablecoin, a crypto-backed stablecoin or an algorithmic stablecoin, we offer customized services to cater to your needs.

Connect with our subject matter experts to navigate and accelerate your stablecoin development journey.