Taebit will be the first decentralized exchange in the world that will utilize a robust decentralized forex market at its core to allow for global accessibility and ease of access even for non-crypto native investors. Stablecoins are among the most widely used forms of cryptocurrency in the market and it allows investors a clear unit of account while also being able to transition from off-chain and on-chain exposure from a financial perspective. However, the market has been relatively fragmented and the industry still requires significant evolution, usability and improved constructs for investors to consider it a universal investing asset.
Broadly there are custodial and non-custodial categories of stablecoins of which the deeper dive is not for the purview of this paper. However, we can discuss the fact that these two have inherently very different characteristics and the industry is continuing to evolve with new non-custodial stablecoins. The primary cause driving this is a vision for a financial infrastructure that has removed single points of failure, conflicts of interest and moral hazard.
However, the search for the ideal system is yet to be found, fraught with regulatory uncertainty and potential design gaps. We believe that the true answer lies along this spectrum driven by high usability, global access and a self reinforcing mechanism that is supported not only by primary, secondary and even potentially tertiary markets.
This is not to say that these types of mechanisms have created issues in the traditional financial systems, where each later potentially leads to an overlapping event. However, we believe that the proper algorithmic system and unique governance structure can make a global on-chain FX market not only tenable, but thrive.