5table Finance goes cross-chain
One price for the $5TABLE token, multiple strategies for your stablecoins, lots of profits for the holders. Find everything here
At 5table Finance we are always searching for the best opportunities and ways to improve the protocol that will lead us to achieve our main objective --> Become the #1 Stablecoins protocol across all the DeFi landscape
This is a key decision that will have a big impact in the way our protocol works forever, since once the bridge is deployed there is no way back.
15 days ago we made the decision to follow a multichain approach, looking to offer the opportunity for the $5TABLE holders to bet not only on the 5table Finance protocol itself but also on the chain performance.
It was a tough decision to make, and there was a big part of the community supporting the cross-chain approach. With little time until our next expansion into BSC, the multichain approach provided us an opportunity to change course in the future if necessary, something that the cross-chain approach didn’t allow.
After launching on BSC, with the governance feature already deployed, and some more time to analyze deeply this matter, we concluded that although both alternatives provide good opportunities, a cross-chain approach can help us build a more simple and scalable protocol.
A cross-chain token reflects in a better way the foundations in which 5table Finance is built. A simple and extremely efficient protocol, built for everyone and with any complex system to understand.
What does this mean for the $5TABLE holders in the short term?
After the bridge is deployed, all the holders will be able to send their $5TABLE tokens from Fantom to BSC and vice-versa. Arbitrage will take both tokens to the same price, and when they get to the same price, the market forces will maintain them at the same price forever.
The total supply across all chains will be the combination of the supplies on both Fantom and BSC, benefiting the current liquidity necessity on BSC at the same time that Fantom holders get to increase the buy pressure adding a really small amount of new tokens circulation.
The bridge used for this is Multichain (previously Anyswap) --> https://app.multichain.org/#/router
How will 5table Finance protocol work after the bridge deployment?
In the first place, the $5TABLE token will have the same price on Fantom and BSC. Even though technically there are two different tokens, each one with its own contract address, the bridge provides arbitrage possibility, making the market forces take both tokens to the same price.
The main stablecoin vault will have no adjustments and will continue to have a specific strategy in each chain, with farms and protocols of the network where it's working.
- The main stablecoin vault will still use SpookySwap, SpiritSwap, and Dark KnightSwap on its strategy, and when it’s adjusted in the future, it will only use farms & protocols from the Fantom Network.
- On the other side, the main stablecoin vault will use PancakeSwap, ApeSwap, BabySwap, and Biswap on its strategy, and when it’s adjusted in the future, it will only use farms & protocols from the Binance Smart Chain.
The profits of the protocol in each particular chain will be used to automatic buyback $5TABLE, benefiting the holders across all chains. And those profits will be distributed between the holders in the 5TABLE Pools of each chain.
This is another step forward that will get us closer to become the most used and profitable stablecoins protocol across all the DeFi world