Alphabase : A decentralized reserve currency for the Metaverse
What is the Metaverse? A virtual world? A game? A digital revolution? We are still searching for a tangible answer to that question. How do we even know that the world that we currently inhabit isn’t just a simulation?
The Role of Stable Coins in today’s DeFi
According to a 2021 Q1 report by crypto research firm Messari, “The stablecoin monetary base reached over $65 billion in Q1 and continues to rise at an accelerating pace. Stablecoins also facilitated a whopping $1 trillion in transaction volume, more than the previous four quarters combined. USDC was the biggest winner, growing its share by 17%.”
Global stablecoins enable investors to generate yield on their crypto assets in the DeFi market while alleviating the potential adverse effects of market volatility.
If an investor places ETH into the Compound protocol to earn interest, for example, there is the possibility that an ETH price drop offsets all yield earned, leaving the investor with a loss. However, if the same investor uses a stablecoin, such as USDC, the value of the underlying asset would remain stable so the yield would remain unaffected by crypto market volatility.
Investors looking for more yield than traditional fixed-interest investments — such as savings accounts, money market funds, or bonds — can digitize their funds to earn above-average yields in the DeFi market. Arguably, the easiest and safest way to do that is to tokenize US dollars into USDC, which can then be used to deposit into DeFi protocols.
Unsurprisingly, digital dollar stablecoins are becoming increasingly important assets in the DeFi lending markets. USDC, for example, has established itself as one of the most popular lending assets on platforms such as Compound, dYdX, and Aave with lending rates ranging from 0.15% to 11.82% APY.
Alphabase, and new decentralised currencies for the Metaverse
Metaverses are sprawling universes that users access via a computer or virtual reality headset, allowing you to work and play in a fictional, digital realm. In order to truly become fully immersive worlds with their own economies, they need a currency — and that’s where Alphabase steps in.
Metaverse currencies can typically only be spent in the metaverse they’re tied to. You buy them through each virtual universe’s store or equivalent. The currency can be used to buy in-game items, such as land or items which can then be traded with other players.
Alphabase wil not be tied down to one single Metaverse, but will actively particpate in several Metaverses. Similar to Olympus Pro, Alphabase will allow Metaverses’ to own their liquidity by utilising Alphabase.
Alphabase is committed to building a fair token-issuing institution and to having ALP accepted across the Avalaunch Metaverse. As the Metaverse space and Avalaunch equally mature, Alphabase will provide the infrastructure for users to transact not only within one Metaverse, but across several.
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