• Recent speculation suggests that the rise in Canto price is due to a spike in the volume of Note, a quasi-stablecoin associated with Canto and pegged to USDT/USDC.
• Members in the Canto discord community were quick to suggest that Note is safe due to being 100% collateralized.
• Canto provides users with a Free Public Infrastructure, a zero-fee DEX for liquidity providers, a Canto lending market, and Note, completing the decentralized trifecta of offerings by Canto.
Recent speculation has suggested that the rise in Canto price could be attributed to a spike in the volume of Note, the quasi-stablecoin issued by Canto and pegged to USDT/USDC. This has caused some investors to raise concerns about the health of the asset and whether it may be susceptible to the same issues as the TerraUSD/UST algorithmic stablecoin, which collapsed in 2022 after its peg fell short resulting in a run on nearly $45 billion worth of assets.
However, members in the Canto discord community have been quick to downplay these fears and suggest that Note is safe due to being 100% collateralized. This is a stark contrast to TerraUSD/UST, which was not backed by any form of collateral.
Canto is a permissionless Layer-1 (L1) blockchain running on the Ethereum Virtual Machine, which provides Tendermint consensus secured by validator nodes with EVM executions via Cosmos SDK. Its business model is centered on what is known as Free Public Infrastructure, which it likens to free parking on a city street, with the Canto DEX being a zero-fee DEX for liquidity providers. This is supplemented by the Canto lending market (CLM), which provides users funds pooled through its lending compound v2 fork.
Finally, Note completes the decentralized trifecta of offerings by Canto, described as a „full collateralized, algorithmic stablecoin.“ This allows users to take out loans and collateralize their assets with the stablecoin, providing them with a degree of safety and assurance that their assets are secure.
In conclusion, despite some investors raising concerns about the health of Note, members in the Canto discord community have been quick to suggest that it is safe due to being 100% collateralized, and Canto’s trifecta of offerings provides users with a variety of services that are secure and reliable.