Havven is the first stablecoin to use the EOS platform. The stablecoin is backed by an Australian company, and already has a presence on the Ethereum blockchain. Havven’s goal is to be “blockchain agnostic”, so their stablecoin can survive even if one of the major blockchain platforms goes down permanently.
Garth Travers, who is a project manager at Havven, expanded on the company’s motivations to CCN via a written interview. Travers said “Havven chose to launch on the EOSIO blockchain because we see the need to remain blockchain agnostic,” he continued, “If all useful projects remain exclusive to any particular blockchain, it will create ecosystem fragmentation, which will cause friction to the adoption of decentralized systems.”
Havven sees survivability as important
Havven has an interesting way of maintaining their relevance across multiple networks and making sure their users aren’t locked into a system that could be destroyed easily. The last week has seen major reductions in crypto prices, with many of the smaller altcoins getting slammed. There is no way to know if any given network will survive long-term, and Havven seems to acknowledge this risk with their design philosophy.
Havven’s nUSD token was introduced in June of this year, and they are backed by collateralized HAV tokens. The launch on EOSIO is a further step towards their goal of system redundancy. Havven may also benefit from the improved transaction times on the EOS platform, as their goal is to create a realistic medium for everyday digital payments
Kain Warwick, the founder of Havven, had this to say about the new platform, “EOSIO allows greater transaction throughput which means dApps can support significant volume,” and that, “Our goal is to support these projects by providing a stable medium of exchange for them to build on. Many categories like decentralized marketplaces or gaming applications will open up further and be able to deliver comparable transaction numbers to centralized systems. Havven is well placed to be a stable payment token within these ecosystems.”
A popular sector
Other stablecoins like Tether have been very popular, but also a source of controversy. A stablecoin seeks to eliminate price fluctuation by having a solid backing, so that price speculation is eliminated. This puts the company that guarantees the value of a stable coin into the position of a money-market fund, as they need to make sure they are able to defend the value of their product on the open market.
So far there hasn’t been a rush to cash in stablecoins en masse. Tether has raised more than USD 2.5 billion in fiat, though some speculate much of it has found its way into Bitcoin. With the recent downdraft in crypto prices, market currents could change. Hopefully, Havven will create a more transparent capital structure than Tether has, and ensure the confidence of its users.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.