- Canza Finance introduces Baki, a stablecoin platform on Avalanche for African fiat currencies.
- Baki enables seamless exchanges between African currencies, addressing FX scarcity.
- The platform aims to empower the emergence of DeFi in Africa and transform the landscape of African stablecoins.
Canza Finance, has unveiled Baki, a revolutionary stablecoin platform constructed on Avalanche, designed to bolster an assorted array of fiat currencies throughout Africa. With the introduction of Baki, Canza Finance takes a substantial leap in ushering forex trading into burgeoning markets, concurrently transforming the utilization landscape of African stablecoins.
The Potency of Baki: Unleashing Liquidity and Swaps Free from Slippage
Baki, an inexhaustible-liquidity forex protocol, facilitates seamless and slippage-free exchanges between African currencies. It empowers users to deposit stablecoins and generate overcollateralized synthetic assets, denominated as zTokens, tethered to specific African fiat currencies. This represents the premiere implementation of African stablecoins on the blockchain.
By harnessing Baki’s innovative functionality, any zToken can be extinguished to mint an equivalent value of zTokens in another African currency. Presently, Baki supports the creation of US Dollars (zUSD), Nigerian Naira (zNGN), West African CFA (zCFA), and South African Rand (zZAR). The platform ensures that all foreign exchange (FX) conversions between these currencies are executed at central bank rates, providing users with access to dollar markets at the most advantageous rates attainable.
Revamping FX Transactions in Africa
“Baki aspires to reshape the fundamentals of FX transactions on the continent by establishing a robust and accessible marketplace that offers all participants the most optimal and equitable pricing,” declares Victor Teixeira, Chief Crypto Economist at Canza Finance. By instituting a synthetic marketplace for African currencies, Baki effectively addresses a pivotal challenge in the region – FX scarcity. The adoption of Avalanche C-Chain as the foundational blockchain furnishes the most efficient and swiftly expanding infrastructure to facilitate this protocol, replete with myriad on-ramps and off-ramps to support widespread usage.
Unleashing the Potential: Baki’s Influence on African Stablecoins
In its inaugural release, Baki concentrates on enabling on-chain trading of tokenized Nigerian Naira, South African Rand, and West African CFA. However, these stablecoins distinguish themselves from their counterparts, as they are not directly backed by the underlying currency. Instead, they find backing in USDC, a distinguished stablecoin boasting a market cap that surpasses $25 billion. This backing guarantees substantial liquidity, diminished fees, and a user-friendly encounter within the decentralized finance (DeFi) ecosystem.
Pioneering New Horizons: Baki and the Ascendance of African Stablecoins
With its innate integration on the Avalanche blockchain, Baki spearheads the synthetic DeFi market for African stablecoins. The protocol is strategically positioned to leverage the unique dynamics of the Sub-Saharan FX market, characterized by elevated inflation rates, currencies that are illiquid and fragmented, and a predilection for over-the-counter (OTC) and peer-to-peer (P2P) markets over centralized exchanges (CEXs). In doing so, Baki charts the course for the emergence of a new wave of DeFi power users across the continent.
Canza Finance has unveiled Baki, a revolutionary stablecoin platform built on Avalanche for African fiat currencies. Baki enables seamless and slippage-free exchanges between African currencies, addressing FX scarcity. It leverages the Avalanche blockchain for efficient infrastructure and introduces a new wave of DeFi power users in Africa.
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