{"id":16154,"date":"2021-12-09T20:06:35","date_gmt":"2021-12-09T17:06:35","guid":{"rendered":"https:\/\/esatoshi.club\/?p=16154"},"modified":"2022-02-08T20:55:41","modified_gmt":"2022-02-08T17:55:41","slug":"project-overview-mars-ecosystem-xms","status":"publish","type":"post","link":"https:\/\/satoshi-club.esipick.com\/index.php\/2021\/12\/09\/project-overview-mars-ecosystem-xms\/","title":{"rendered":"Project Overview: MARS Ecosystem ($XMS)"},"content":{"rendered":"\n

When it comes to trading and investing in the cryptocurrencies world, one of its major advantages is tied to its inherent and literal \u201cflip side of the coin\u201d: that is, volatility. <\/p>\n\n\n\n

While legal tenders maintain daily volatility percentages that float around the 0.5% mark, it is instead not usual for cryptocurrencies prices to undergo 5%, 10% downside\/upside changes (or even more) in a short span of time. By simple syllogism, such an event can imply huge losses (or gains) for investors; instead, a fiat currency, regulated by a government, has a fixed value; take for example the British pound or the U.S. dollar – and, yeah, I can already hear a lot of you screaming…for matters of simplicity and logical, yet theoretical reasoning, I\u2019m deliberately keeping inflation out of the equation, so please stick with me \ud83d\ude42<\/p>\n\n\n\n

So, while volatility can be a positive, driving factor if a trader knows exactly when to buy or sell, we cannot avoid taking into account the fact that the majority of cryptocurrency investments are extremely risky investments, being fully aware that the financial concept of risk-reward is a dual, holistic one. <\/p>\n\n\n\n

Despite this acknowledgment, the cryptocurrency world is already armed to offer a different category of products to those that show higher risk aversion in their financial decision-making behavior. Anyone that wants to have access to the decentralized benefits brought by the industry – not having to worry, at the same time, about the ups and downs of crypto prices – can invest in a different crypto asset: stablecoins.<\/p>\n\n\n\n

While this is not an in-depth guide on \u201chow do stablecoins work?\u201d, \u201cwhat are stablecoins?\u201d or \u201cwhat is volatility?\u201d (I can assure you, you can easily and quickly find the answers following up with a simple google search), we will still briefly touch upon these topics here and there, as they play a pivotal role in the brilliant design and architecture of today\u2019s featured project – the MARS Ecosystem.<\/p>\n\n\n\n

In the next paragraph we will work our way towards building our understanding via a brief introductory compendium meant to scratch *very superficially* the surface that makes up the bulk of the questions above \u2026 and then, armed with that simple knowledge, we will delve deeper into the value-packed proposition and amazing goodies that the MARS Ecosystem team is developing!<\/p>\n\n\n\n

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  1. A Quick Understanding of The Central Role Played by Stablecoins<\/strong><\/li><\/ol>\n\n\n\n

    If we put on the analyst hat and examine how the market cap of decentralized stablecoins has been faring during the last year (taking into account, for example, \u201cstables\u201d like DAI, sUSD, etc.), it gets very easy to reckon that a real boom has been taking place: the growth of the stablecoins market has been unprecedented with a whopping ~22x growth. While this may only seem a huge number, it also bears all the signs of what could be seen as the jump-start of a new era – one where decentralized stablecoins could take the lead and even overthrow, in a not-so-unlikely future, the multitude of centralized, regulated stablecoins represented by behemoths of the likes of USDC or even BUSD. <\/p>\n\n\n\n

    Keeping our analyst hat still on our heads, we can see that the current, aggregated market cap of centralized stablecoins has reached over the years the order of magnitude of hundreds of billions of dollars (market cap variations have also been frequent and quite dramatic with volatile swings, just as witnessed in recent periods). While this is huge and impressive, decentralized stablecoins are also taking hold in terms of adoption (with the current market cap around one-tenth of the figures outlined above), with many technical projections and indicators foreshadowing a potential \u201cflippening\u201d scenario occurring in less than 3-5 years from now.<\/p>\n\n\n\n

    But why is this important? <\/span><\/em>Let me correct myself: it\u2019s not important – it\u2019s critical\u2026 and that is because, by definition, stablecoins represent DeFi\u2019s life essence. Decentralized stablecoins are at the very heart of the DeFi stack – that is, the modular, holistic design that makes Decentralized Finance the unique one-stop-shop for all of the services & products that we\u2019re able to currently enjoy. If the DeFi stack is the engine, stablecoins are its fuel. <\/p>\n\n\n\n

    And this fuel is far from being the perfect mix though: the way actual stablecoins were to fit the stack\u2019s architecture has, over time, bred three main issues: there is no stablecoin design that simultaneously meets the needs of price stability<\/span>, decentralization <\/span> & scalability<\/span>. And that\u2019s when, where, and why the Mars Ecosystem team steps in.<\/p>\n\n\n\n

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    1. What is the Mars Ecosystem<\/strong><\/li><\/ol>\n\n\n\n

      The above graphic does a great job of addressing some of the pros and cons of some of the most famous stablecoins of the cryptoverse. So, you might now be asking: what\u2019s the Mars Ecosystem bringing onto the table? What is the value proposition brought forth \u2026 and, above all, what is Mars Ecosystem?<\/span><\/em><\/p>\n\n\n\n

      The Mars Ecosystem is a Decentralized Stablecoin and DeFi platform, whose design is tripartite; it is composed of 
      <\/p>\n\n\n\n