Kava Labs is developing a stablecoin, USDX, backed by XRP on a Cosmos Zone, which dynamically maintains stability to USD with decentralized mechanisms. Moreover, USDX has a native token, XRS, which is used by validators to vote on blocks and participate in governance.
XRP-backed stablecoin: USDX
Kava Labs is already working with Interledger Protocol [ILP] to bring blockchains, wallets, and exchanges, the interoperability of ILP. Further, Kava Labs is also backed and invested in by Ripple’s initiative, Xpring.
The Co-founder and COO of Kava Labs, Brian Kerr, in a conversation with AMBCrypto said,
“The USDX /xrp peg on our GitHub is merely a specification our developers created in exploration around its feasibility. We have yet to decide if we will strategically pursue this as an initiative for Kava.”
Cosmos is a blockchain that aims to solve the scalability and interoperability problems of many Proof-of-Stake blockchains. USDX will be implemented as a Cosmos Zone designed to peg XRP and issue a XRP-collateralized token, USDX.
Source: Cosmos Video
Brian Kerr further confirmed that the “specification works and getting XRP into Cosmos is feasible, as well as Cosmos CDPs [Collateralized Debt Positions] with external assets as collateral.”
XRP Community and USDX
The XRP-backed stablecoin was first spotted by a Twitter user, @GermanCryptoInv, after he tweeted,
— Crypto Invest (@GermanCryptoInv) May 16, 2019
Ever since this discovery, the XRP Army/community has been excited about the XRP-backed stablecoin. However, Brian Kerr confirmed that it would require reallocation of huge amounts of resources and a shift in focus from their original project, “Switch App,” which helps users swap cryptocurrencies in the fastest and most secure way,