Array: The Next Stablecoin Unicorn After Luna’s Collapse in a Booming Market?
Can you believe it? An investment project, which had once reached a market value of up to $41 billion and was pursued by hundreds of thousands of people around the world, experienced a sudden and drastic drop without any warning. Within just a few days, the price of the token plummeted from nearly $90 per token to less than $0.00015 per token. Billions of dollars in assets disappeared instantly, and those who continued to buy in during the crash ended up losing everything. Some even had thoughts of ending their lives.
Such a severe collapse is rare in the entire financial market. Accusations and doubts of running a Ponzi scheme and embezzlement followed. With its own actions, the project triggered a seismic event in the cryptocurrency world, causing all cryptocurrencies to fall and forcefully breaking through the bubble. This has captured global attention, becoming a top trending topic and dominating headlines in online searches worldwide.
We won’t discuss the crypto earthquake caused by LUNA, instead, let’s take a look at its achievements. With almost zero staking, LUNA has created a stablecoin legend with a market cap ranking third in the cryptocurrency market, only behind the market giants such as BTC and ETH. Based on this, you have to admit that this is an incredible business miracle.
What is exciting is that despite Luna’s collapse, many new stablecoins have emerged, including DAI, FRAX, and others. These stablecoins are not only widely adopted in the cryptocurrency market but also gaining more recognition and application in traditional finance.
One of the latest concepts is the “super stablecoin” proposed by an early project called Array. Unlike other algorithmic stablecoins, the Array protocol does not rely on anchoring to a stablecoin but instead uses its self-developed algorithm system to design a steadily growing super stablecoin.
Array is user-centered in its design, redefining the potential of algorithmic currencies and simplifying the complex steps of application interaction. So even novice investors don’t have to worry about losing their money.
What sets $ARA, the native token of Array, apart from traditional stablecoin projects are its unique features:
$ARA has two prices.
The price of $ARA starts at $1 and is supported by 90% of the assets deposited by the user, which are injected directly into the backing contract to maintain a stable floor price. The remaining 10% is used for market price discovery and injected into the liquidity pool, allowing free trading on the open market at any price.
$ARA has a risk-free value reserve feature.
It lies in the fact that each unit of the cryptocurrency is supported by the Array treasury, and as the treasury accumulates more assets, the minimum price of $ARA also increases.
Users who hold $ARA tokens can benefit from the platform’s profits and use $USDR to explore and participate in ecological applications. Additionally, as developers or co-builders, they can share dividends with the platform. $ARA and $USDR are in a 4:1 relationship based on the gold standard. Every time 5% of $USDR is consumed, 20% of $ARA will be locked up, which will increase the demand for $USDR and decrease its supply. This will result in a price increase and create arbitrage opportunities for USDT. Moreover, this will indirectly increase the demand for $ARA as users buy more $ARA to stake and unlock $USDR. As a result, the price of $ARA will continue to steadily increase.
In Array, users can earn an annualized return of 36% by staking $ARA tokens. Additionally, they can mint $USDR tokens and participate in various applications to earn even more $USDR. For example, a novice investor could invest $1,000 and use it to purchase and stake $ARA. By doing so, they would not only earn interest on their investment but also receive a corresponding amount of $USDR loans. As the price of $ARA tends to steadily increase over time, users can redeem and sell their $ARA holdings at a later point for a profit, in addition to earning staking rewards and $USDR from various applications.
Meanwhile, in order to attract more Web2 & Web3 traffic, the platform provides a space for collaboration and idea exchange within the DeFi field, and aims to promote innovation. DAPP developers can set their own transaction fees, enabling them to contribute to the development of the DEGA ecosystem. The platform places users in a fully competitive market where everyone seeks to maximize their own interests. In addition, the platform directs traffic to various projects, creating a positive feedback loop and achieving the highest economic efficiency possible under this balance.
As an early stablecoin project, Array has demonstrated its willingness to break away from conventional thinking and embrace innovation. Its “super stablecoin” concept has undoubtedly ushered in a new era for stablecoins. If its technology and business model can be successfully applied and promoted, Array has the potential to become a new stablecoin unicorn and make a greater contribution to the development and innovation of the stablecoin market.