Float Protocol has over $1B of cryptocurrency locked in its contracts after less than a day since the project’s phase two distribution event began.
The locked cryptocurrency “will not be used for anything,” according to the launch post, except to “distribute BANK, build an active user base, and provide signaling.”
BANK itself will be used in auctions to stabilize demand for FLOAT, the protocol’s stable asset, and also to govern the protocol.
BANK’s price has tripled to about $950 since it was listed on CoinGecko on Feb. 27, with wild spikes to as high as $1,515 over the past couple of days.
FLOAT will be minted after the two-week phase two event is complete.
Non-pegged Stable Assets Gaining Steam
There are over 16M unique users of the approximate $55B in circulating USD stablecoins according to a Dune Analytics dashboard and CoinGecko’s stablecoin tracker.
The total value locked (TVL) in Float’s contracts would put the protocol in DeFi Pulse’s top 10 protocols.
Another project taking aim at the USD stablecoin market, OlympusDAO, launched yesterday. A stablecoin called FEI, which is pegged to the dollar using novel incentive mechanisms, will also ship next week.
Meanwhile, Reflexer Labs’s RAI token, a stablecoin that is pegged to itself, and not the USD, shipped last month.
Messari Senior Analyst Ryan Watkins, who noted that it’s “going to be a big week for non-pegged stablecoins” on Twitter, told The Defiant that while he views the asset class as “exciting and important,” they’re “very much still experiments.
It will take time for users to get comfortable with new stability models and adjust their mindsets to think about stability in an independent and non-dollar-pegged manner,” he said.