Decentralized Stablecoin Hope Launches

HOPE is the primary stablecoin for the DeFi ecosystem of Hope, aiming to bridge traditional finance with the crypto world.

Decentralized Stablecoin Hope Launches

Former Flex Yang, ex-CEO of the collapsed crypto lending firm Babel Finance, has announced the launch of his own DeFi project named Hope.

HOPE is a decentralized stablecoin pegged to the USD but backed by other cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). The project plans to incorporate additional cryptocurrencies, and potentially other stablecoins, as collateral in the future.

HOPE will serve as the primary currency within the Hope DeFi ecosystem, which includes the following products:

• HopeSwap: A decentralized exchange (DEX) utilizing an Automated Market Maker (AMM) model, providing users with access to HOPE.
• HopeConnect: A platform for trading crypto derivatives on centralized exchanges (CEX) without needing to deposit assets.
• HopeLend: A lending service via liquidity pools.
• HopeEcho: A platform for creating synthetic assets that combine crypto with real-world assets.

Additionally, the Hope ecosystem features a governance token called Light Token (LT), designed to incentivize liquidity provision and participate in important protocol governance votes.

The launch of the Hope stablecoin comes at a highly sensitive time, following the near-collapse of traditional bank Silicon Valley Bank, which almost triggered a crisis for USDC, the second-largest stablecoin in the crypto industry. However, U.S. authorities intervened and committed to fully reimbursing depositors, helping USDC regain its peg on March 13.

Last week, there were reports that Hope would be used to cover the $766 million loss Babel Finance owes its clients. However, the announcement of the stablecoin's launch did not address the lending firm or its former CEO’s connection.