DWF Labs says it has designed a synthetic collateralized stablecoin
Quick Take The token will support numerous assets with different annual percentage yields. Supported collateral includes USDT, USDC, DAI, USDE, bitcoin and ether, in addition to some blue chip tokens and other altcoins.
Crypto industry investor and market maker DWF Labs said it has finalized designs for a synthetic collateralized stablecoin.
The token will support numerous assets with different annual percentage yields: USDT, USDC, DAI and USDE, bitcoin and ether, in addition to some blue chip tokens and "long tail alts," DWF Labs's Managing Partner Andrei Grachev wrote on the social media platform X on Thursday.
DWF Labs was one of the most active investors in the crypto industry in 2023, particularly with Layer 1 blockchain projects and other firms developing crypto infrastructure, according to research from The Block Pro.
However, the firm has drawn criticism for how it structured past investments, which had appeared more like over-the-counter trades than traditional venture capital fundraising rounds, as well as limited transparency for its market-making services.
The Block has also previously reported on DWF Labs' executives having discussed boosting token prices with clients, as well as language used in client communications making references to helping drive prices upwards.
If DWF Labs launches its stablecoin, it will be entering a competitive market. The Block's Data Dashboard shows that the total stablecoin supply reached nearly 176.7 billion as of Sept. 4, with Tether's USDT holding over 70% of the share.
The Block reached out to DWF Labs for comment.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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