From Fiat to Bitcoin-Backed Stablecoins: An Easy Swap Guide
Exciting news for those looking to swap centralized fiat-backed stablecoins for Bitcoin-backed stablecoins! Sovryn’s Mynt hit the mainnet and has revolutionized the approach to decentralized stablecoins in relation to Bitcoin, providing a much-needed alternative to traditional assets.
Currently, there are two Bitcoin-backed stablecoins available, both on Rootstock Blockchain — Dollar-on-Chain (DoC) by Money-on-Chain and ZUSD by Sovryn’s Zero Lending Protocol. With increasing demand for Bitcoin-backed stablecoins, we can expect new stablecoins with different approaches to collateralization and maintaining the peg to the US dollar.
Sovryn Mynt is similar to BabelFish Stablecoin aggregator, but focuses exclusively on Bitcoin-backed stablecoins. By aggregating and issuing a a Bitcoin-backed meta-stablecoin called DLLR, Mynt is averaging the risks and improving the user experience. Not to mention providing an excellent opportunity to earn on liquidity providing to Sovrny’s DLLR/rBTC AMM pool.
If you have Bitcoin, obtaining DLLR is simple: use your Bitcoin as collateral and mint base stablecoins like DoC or ZUSD and after that just use Sovryn Mynt to swap to DLLR. ZUSD is especially interesting because you can obtain DLLR instantly after opening a line of credit with BTC as collateral.
But what if you don’t want to use your Bitcoin as collateral and you have centralized fiat-backed stablecoins? Enter BabelFish, a stablecoin aggregator that allows you to swap different types of stablecoins, including fiat-backed centralized stablecoins, semi-decentralized stablecoins, and decentralized stablecoins.
Using BabelFish’s web app (https://app.babelfish.money/convert), you can swap your stablecoins to XUSD. Currently USDT, USDC, DAI on Ethereum and all mentioned plus BUSD on Binance Smart Chain are supported.
Since BabelFish aggregator also accepts deposits of Bitcoin-backed stablecoins on Rootstock Blockchain, you can swap your newly acquired XUSD to ZUSD and after that just use Sovryn’s Mynt to mint DLLR.
For example, if you bring USDC on ETH, choose it in the starting chain, and as the destination chain choose Rootstock with XUSD as the desired stablecoin, afer this just use BabelFish again, but this time swap between XUSD and ZUSD.
The next step is using Sovryn’s Mynt protocol and converting ZUSD to DLLR (https://sovryn.app/convert).
It’s a simple process, and we can expect things to become even smoother in the near future. We’re optimistic that with the support of the BabelFish Community, we’ll be able to enable DLLR deposits to our aggregator, making the whole experience even more convenient. This would eliminate two steps in the current procedure and greatly enhance the overall user experience.