Ethereum Classic Labs and the Fantom Foundation are collaborating to add Decentralized Finance (DeFi) to Fantom according to a press release published on February 10. Ethereum Classic (ETC) will serve as collateral for stablecoins similar to DAI in the Fantom platform.
Fantom plans to launch Xar Network, the DeFi framework specifically designed for the project. In this framework, Byzantine Fault Tolerant (BFT) consensus technologies like TxFlow and Laches are used to provide a blockchain environment that supports the improved options of decentralized finance. This system can work with external blockchain networks such as Ethereum and Binance, allowing secured loans and atomic swap transactions.
Ethereum Classic will only assume the duty of collateral within the Fantom platform. Stablecoins will function on Xar Network’s blockchain with the stablecoin protocol Collateralized Stable Currency Tokens (CSCT).
The target of Fantom is firstly the initiatives and the usage areas within government. The Fantom platform will use Ethereum Classic for stablecoin creation on allowed networks. When we consider the issuers, there will be an environment where they can gain interest by having full control over the collateral and staking stablecoin.
ETC is preferred because it is almost immutable!
When we look at the claims, we can see that ETC is preferred because it is more committed to being immutable than Ether.
With this cooperation, the usage areas available for ETC on the Fantom will increase. In fact, Ethereum Classic can theoretically handle DeFi platforms in general, but will only function as collateral in this project. It is likely that it will be able to take part in different tasks other than collateral in the future. If you want to get more detailed information about the structure of Ethereum Classic, you can visit our blog page and browse the content related.