MakerDAO Partners Ink Protocol to Bring Price Stability to Ethereum Blockchain
Ink Protocol (XNK) – a platform built for trusted peer-to-peer payments and decentralized reputation – has today partnered with a stalwart of the Ethereum network in MakerDAO (MKR) – the organization behind the Dai (DAI) stablecoin and its accompanying decentralized credit system.
According to a press release issued on Ink Protocol’s blog, the main outcome arising from this partnership is the newfound ability of users to transact with the Dai stablecoin when using Ink Protocol’s Ink Pay – a mobile- and web-browser-friendly app that makes it possible to easily buy and sell on any marketplace or platform (e.g., Facebook Marketplace, Craigslist, etc.) whilst earning transferable reputation that can be universally viewed.
Previously, users of Ink Pay – which entered into public beta in late-June – were only able to pay using one of either Ink Protocol’s native XNK token, or the Ethereum-based ether (ETH) token.
Having now integrated with Maker’s Dai stablecoin, Ink Pay users have no need to fret vis-à-vis changes to a token’s future value disadvantaging them. For buyers, this means not having to be concerned that the value of the cryptocurrency they are spending today being worth more in the short-term future (see: Laszlo Hanyecz, or, the bitcoin “pizza guy”).
As for sellers, they now need not stress about having to immediately convert any received cryptocurrency into fiat. Despite the nuisance, such a practice is rather common among crypto-friendly merchants, for it ensures the value of their received payment is not prone to being radically diminished by the notoriously volatile cryptoasset market.
To achieve mainstream adoption as a method of payment, a cryptocurrency needs to be an effective medium of exchange and store of value. Dai addresses both of these needs flawlessly.” – Gee-Hwan Chuang (CEO & Co-Founder, Ink Protocol)
Importantly for the value proposition of the ERC20-compliant XNK token, Wednesday’s announcement explains how “similar to [Ink Protocol’s] support for ETH, payments made using Dai are converted to XNK in Ink Pay’s smart contracts on their way to becoming Ink Protocol transactions.” This all happens behind-the-scenes, so to speak, when buyers and sellers opt to transact with ETH or, thanks to today’s partnership, DAI.