Euro-pegged stablecoin at heart of DeFi protocol that’s taking on Tether

A crypto payments platform has undergone a rebrand — and has launched a new suite of easy-to-understand applications that are designed to deliver innovation in decentralized finance.

Mimo is a new protocol that serves as a successor for TenX, which captured the imagination of early adopters by allowing them to complete crypto transactions anywhere using a card.

Much of the foundational technology used to build TenX is now being implemented in Mimo, which aims to bring exciting new features to the DeFi space.

At the center of its offering is Parallel (PAR), which has been billed as the first decentralized stablecoin that is algorithmically pegged to the euro. Stability is achieved by keeping collateral locked in a smart contract vault.

According to Mimo, today’s marketplace is dominated by dollar-backed assets such as Tether — despite the fact that the euro is the second most-used currency worldwide.

New users can start using the protocol by connecting an ERC-20 wallet — and the platform accepts Wrapped Bitcoin, Wrapped Ether and USDC. From here, they can begin providing liquidity in order to mint new PAR.

Explaining the vision for Mimo going forward, the team of developers behind this project said: “Mimo has a unique opportunity to bridge the existing chasm between the DeFi world and trusted world of regulated financial institutions by offering a fully decentralized stablecoin platform with loans & savings (under development). This will allow us to both move fast and leverage the existing trends in DeFi and offer a highly competitive product to our user group.”

Plans are in place to develop a community governance model that ensures users will be able to vote on-chain and share their views on the upgrades that should be made to the protocol in the future.

Why the change?

In an announcement at the time, the team said TenX “didn’t capture the purpose of decentralized finance.” A lot of this lies in how people wanted to access continued exposure to cryptocurrencies, rather than end up spending it down the shop.

Mimo shares many of the team members that TenX did — all while adding new skillsets that have helped take the total value locked in this new protocol to €33m ($40m) at the time of writing. WETH is by far and away the most popular asset that has been locked up on this platform — 66.8% of the total — followed by WBTC on 23.2% and USDC on about 10%.

The protocol has been independently audited by Quantstamp, and no medium or high-risk issues were uncovered in its report.

Mimo’s whitepaper also revealed why the introduction of a decentralized, euro-pegged stablecoin is so important — explaining that the crypto industry is about to see a new group of users (known as the “early majority”) begin to experience their very first contact with digital assets.

More insights from Mimo here

The authors wrote: “The new users coming into our industry today have a lower risk tolerance, which can be seen by the increase of stablecoin usage for transfers compared to using volatile cryptocurrencies for transfers. At the same time, these new users are not looking for high risk, high return, but instead they are looking for returns denominated in their own currency.”

Looking ahead, Mimo believes that its protocol, as well as the PAR stablecoin, has an irresistible opportunity to cater to the “crypto curious” by delivering straightforward access to savings and loans at competitive rates.

Learn more about Mimo

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