- Parallel, a stablecoin pegged to match the Euro has been developed by the Mimo protocol to provide a worthy alternative to dollar-backed stablecoins.
- The project sees the linking of DeFi and traditional financial institutions as its core aims with the launch of the decentralized stablecoin platform.
- Mimo rose from the ashes of the TenX protocol as it failed to live up to the ethos of decentralized finance.
- A total of 17,150,367.73 PAR have been minted so far and 233 vaults have been created
The Euro as the second-largest currency in the world has not been given the attention it deserves amongst cryptocurrency circles. This is evidenced by the plethora of top-ranking stablecoins that are linked to the dollar such as Tether, Binance USD, DAI amongst others.
In response to this, Mimo has unveiled Parallel, a stable coin that is backed by the Euro at a ratio of 1:1. This is intended to introduce a whole new wave of crypto users that have a “lower risk tolerance”
Parallel – A Stablecoin for the Euro
While dollar-backed stable coins have stolen the spotlight in recent times, the Euro has been largely ignored by the Cryptoverse. In light of this, the Mimo protocol has launched the first stablecoin that is pegged to the Euro at the rate of 1:1 as part of the massive ongoing rebrand for the platform.
A smart contract vault is utilized to ensure the stability of the token by locking down collateral. The entire process is designed to be fluid for users of the protocol; all they will need to do is merge an ERC-20 wallet, deposit cryptocurrency, provide liquidity and start minting PAR tokens. It is imperative to note that assets are not loaned out in the protocol and deposits are protected by the Safety Reserve.
Two pools are available to users; the PAR-USDC and PAR-WETH pools. Speaking to the novelty of the project, the development team stated that the protocol is in a unique position to “bridge the existing chasm” between DeFi and traditional financial institutions through the creation of the decentralized, Euro-backed token.
On the Flipside
- As CBDCs are rapidly in development, the existence of stablecoins may be threatened.
- Stablecoins may now need to put more into following regulatory frameworks, as the battle with CBDCs intensifies
- Tether’s recent travails with the New York Attorney General Office, labelled the stablecoin a “ticking time bomb” by Ethereum’s founder, Vitalik Buterin.
New Beginnings for Mimo
Mimo is the successor of the TenX protocol that failed to live up to its expectation given the current climate of DeFi solutions. In response, Mimo was developed bearing a core of the innovations of TenX and sharing a majority of the team members with TenX.
Learning from the deficiencies of TenX, Mimo promises a host of intuitive applications which are centred on the emerging DeFi space. The buzz around the project has seen the total value of the protocol rise to an impressive $41 million. On the protocol, wETH holds the lion’s share of the asset composition with 72.61% while WBTC and USDC hold 19.38% and 7.99% respectively.
Financially, the project is in a positive position having been independently audited by Quantstamp, a leader in blockchain security with no high or medium risk issues identified. The unveiling of Parallel, the Euro-backed stablecoin is poised to generate a significant amount of attention for the protocol, providing an incentive for individuals with low-risk tolerance which will usher in the new wave of cryptocurrency users.