Meet Paxos Standard Token (PAX) on CoinLoan
CoinLoan has added Paxos Standard Token (PAX) to the stablecoin list!
We’re adding PAX to offer you more options to lend/borrow and buy/sell stablecoins. From now on, PAX deposits are live. Users can add them in their wallet in My Wallet tab just like TUSD, USDC, and GUSD. Alongside, it is now possible to trade between PAX and EUR on the CoinLoan crypto exchange.
Things to keep in mind
- PAX can be used in a similar way to fiat currencies. You can lend or borrow it but you can’t use it as cryptocollateral.
- PAX is currently available only on the ethereum blockchain as an ERC-20 token.
- Lending PAX is free of charge.
- PAX deposits are free of charge.
- Trading PAX is free of charge.
- You have one free withdrawal per month. Every subsequent withdrawal entails a fee of 35 PAX.
What Is Paxos Standard Token?
Before we start, a quick recap on stablecoins. We mean by that a digital equivalent of fiat money that maintains a relatively stable market price. Most of those coins are tied to the US dollar, but other fiat currencies or even precious metals can be used for the same purpose. By being pegged to real-world assets, stablecoins avoid the wild price swings caused by the high levels of volatility, very common in cryptocurrency markets.
Paxos Standard token combines dollar stability with the efficiency of blockchain technology such as immutability and decentralized accounting. It is issued by the Paxos Trust Company, approved and regulated by the New York State Department of Financial Services and fully collateralized 1:1 with the US dollar.
Paxos Standard has been initially designed as an ERC-20 token so that anyone with an Ethereum wallet is able to send and receive Paxos Standard tokens. Later Paxos announced a release of a PAX token on the independent Ontology blockchain (OEP-4). Currently, the coin is available on two blockchains.
You can read more about PAX here.
Why Is This Update Important for the Platform?
Firstly, it means a newcomer in an ever-expanding list of available currencies. The more currencies, the greater opportunities for users!
Secondly, this is the first step forward followed by far-reaching achievements. Thanks to the tireless efforts of the CoinLoan team we are establishing strong collaboration with enterprise blockchain platform Ontology. Further plans include a listing of PAX on Ontology OEP-4 blockchain and the native token, ONT, as liquid collateral.
What Is a Use Case?
Stablecoins represent a stepping stone between the fiat economy and the crypto economy and this reason alone makes them a perfect tool for cross-border and cross-platform funds transfers.
For instance, when it comes to crypto arbitration between exchanges or an instant funds withdrawal. Stablecoins provide an attractive opportunity for lenders to lock the value of their assets and mitigate losses when stock prices fall. They achieve little fluctuation in the price of assets wasting no time and money cashing out. CoinLoan can make stablecoins work during such periods. Anyone can give out a loan in stablecoins within the desired period and earn up to 22% interests. It’s a great way to increase your holdings while you are waiting for your next move.
Moreover, platform users often ask us if it is possible to earn interests lending the cryptocurrency, they don’t want to deal with traditional banking bureaucracy. Stablecoins provide a solution to avoid time-consuming deposit and withdrawal procedures.
How Does It Work on the CoinLoan Platform?
PAX had joined the list of stablecoins on the CoinLoan platform and can be used in the same way as fiat currencies (USD, EUR, GBP, and RUB). It means that you can use Paxos Standard as an asset to lend and earn interests or an asset to borrow against cryptocollateral.
To lend using PAX, find it in My Wallet tab and deposit your coins to the CoinLoan platform with 1–2 clicks.
If you don’t have Paxos Standard tokens yet, you can easily buy them on the CoinLoan Crypto Exchange at a competitive rate.
You are welcome to test the new features and share the experience with the CoinLoan team!