In the crypto landscape, many projects launch tokens with high inflation, ambiguous utility, and economic models that feel more like temporary experiments than sustainable businesses. This often leads to a cycle of hype and decline, leaving long-term holders with diluted value and unclear prospects. It’s a common problem that has challenged the credibility of the space.

Pendulum ($PEN) is charting a different course. With its “Pendulum 3.0” plan, the project is implementing a mature, pragmatic overhaul designed to bring predictable gravity to a cross-chain world. Instead of relying on inflationary rewards, Pendulum is transforming to a model grounded in real revenue, deflationary pressure, and intelligent governance.

This post breaks down the four most impactful changes in Pendulum’s new economic engine. Each one is a deliberate step away from the speculative norms of the past and toward a sustainable, utility-driven future where the swing just got longer and stronger.

Protocol Value Capture with Vortexfinance.co

The new tokenomics model, announced earlier today by SatoshiPay, forges a direct and powerful link between the $PEN token and VortexFinance. The $PEN token becomes the access token for VortexFinance with a utility-first mechanism:

• up to 50% of the net fee collected by Vortex are charged in $PEN, auto-swapped on the spot by the fee router, if needed.
• Of the $PEN charged by the app, a fixed part is sent to the community-governed treasury or burned, depending on the Pendulum community vote.

But why is SatoshiPay’s Vortex, a separate application, committing its revenue to this? The rationale reveals a powerful alignment of incentives. First, Vortex is built on decentralized Pendulum technology, so strengthening Pendulum strengthens the very platform it relies on. Vortex’s advantage hinges on smooth integration with decentralized building blocks like DEXes, bridges, and autonomous smart contracts operating across multiple chains. To keep that infrastructure aligned with Vortex’s business needs today and as the ecosystem evolves, SatoshiPay is making a clear, forward-looking commitment.

Second, SatoshiPay, the owner of Vortex, is also a major Pendulum contributor and active community member. Directing value to Pendulum perfectly aligns their incentives with the community’s, creating a symbiotic relationship, not a giveaway.

The Inflation Switch has been turned Off. Forever.

In a decisive move against token dilution, the new model introduces a hard cap of 150 million $PEN, fully minted, and completely halts any future issuance.

Inflation: 0% — ever.

This is a significant shift. Many networks rely on inflation to fund rewards. Under the new system, Pendulum’s rewards will be paid directly from the treasury, which is continuously replenished by gas fees and potentially Vortex fee charges. This closes the economic loop without minting a single new token.

With zero new issuance and an automated burn of a portion of protocol fees, the circulating $PEN supply decreases over time, aligning token utility with platform activity..

Governance Now Rewards Conviction, Not Just Capital

Pendulum’s overhaul extends beyond economics to its core utility and governance, moving beyond a simplistic “one token, one vote” system to one that rewards deep commitment.

The new system introduces a “Dynamic vote boost,” where a user’s voting power scales with their staking duration. The longer you stake your $PEN, the more weight each token carries in governance decisions, up to a 2x boost. This rewards long-term conviction and aligns power with those most invested in the protocol’s health.

Additional governance is implemented as a pragmatic approach where the community can steer the knobs but not tear out the engine. With the integration into Vortex, $PEN Token holders can vote on key parameters like fee-tier thresholds, the listing bond size, allowing other project tokens ensuring stability while providing meaningful control.

But $PEN’s utility isn’t limited to governance. It’s a true access token with tangible benefits:

Extra utility for $PEN token

• Fee Discounts: Staking PEN provides direct value, with tiered discounts on Vortex fees. Initial setup, for example: 10% off for 1k PEN, 15% for 10k PEN, and 20% for 100k PEN.
• Token-Listing Bond: Projects must stake $PEN (for example 10k PEN) to list their asset on Vortex for fiat ramping. This “skin-in-the-game” mechanic acts as an anti-spam measure and creates another utility for the token.

Conclusion: A New Blueprint for Tokenomics

Pendulum’s strategy is a mature, physics-inspired change designed for the realities of an interoperable cross-chain world. It leaves behind the inflationary models of the past in favor of a clear, pragmatic, and sustainable economic engine.

By implementing automated value capture, committing to zero inflation, and building a multi-faceted utility and governance framework, Pendulum has created a compelling blueprint. Because Vortex fees are partially converted to and burned in $PEN, the token now plays a tangible role in day-to-day platform access, with its circulating supply adjusting in step with real usage and community participation.

As the crypto ecosystem matures, will more projects choose a utility-first, supply-disciplined approach instead of relying on endless inflation?

The TL;DR

• MEXC PEN trading volume and liquidity depth are low. External market-making is required.
• >$30 k PEN/ETH liquidity is live on Hydration DEX, generating 1–8 % organic APR for LPs last week.
• Fiat ↔️ PEN on‑ramp via Vortex ships Q4 2025, eliminating the need for centralised exchange accounts, enabling easy and scalable fiat/PEN buys and sells
• Coingecko analytics provide transparent tracking of PEN markets across decentralised exchanges (DEXs).
• DEX liquidity costs ≈ zero; Centralised exchange (CEX) listings drain treasuries with fees and compulsory market‑makers.
• Savings from fees and market maker costs are redirected to product delivery and business onboarding — highlighted by last week’s Brazilian API upgrade.
• Utility upgrade incoming: Announcement by SatoshiPay will outline PEN’s new role in Vortex.

Strategic Context: Unlock Easy Access to Small-Cap Tokens

Pendulum and Vortex are still in their early‑growth phase, but the challenge we face — balancing scarce treasury resources against the steep, ongoing costs of CEX listings — is shared by hundreds of emerging Web3 teams. Too often, projects divert precious runway to listing fees and market‑maker retainers, only to discover that liquidity remains thin and users stay away.

Vortex was conceived as a fiat‑to‑DeFi on‑ramp that fixes this structural bottleneck: PEN will be the first beneficiary, yet the rails we are building are open to any token community that prefers to invest in product innovation, market expansion, and genuine utility rather than in old‑school gatekeeping. By aggregating fiat rails and decentralised liquidity under one roof, Vortex can create a new default path from mainstream users to novel protocols — without a single order‑book in sight.

Cost & Efficiency Comparison

Let’s look at the major differences between CEX and DEX listings:

The choice is straightforward: allocate resources where they compound the protocol’s moat, not where they rent space on someone else’s order book.

Current Liquidity Snapshot

• Hydration DEX hosts the primary PEN/ETH pool with >$30 k in two‑sided liquidity.
• Organic APRs have ranged 1 % to 8 % over the last seven days, proving that healthy depth can exist without incentives.
• Slippage for typical retail trades (<$1 k) remains below 1 %, meeting our usability targets.

Vortex Integration & New Utility

• Fiat → PEN on‑ramp: slated for public release before year‑end 2025. Users converting from EUR, BRL and soon more geographies will receive PEN seamlessly.
• Utility expansion: Governance discussion 24 (link) endorsed PEN as the core utility token inside Vortex, enabling fee discounts and future staking mechanisms. Detailed announcement of SatoshiPay upcoming.
• Tokenomics 2.0: With the supply cap locked at 150 m PEN, integration generates sustained demand without inflation risk (Link to runtime upgrade Referendum).

Looking Forward

Conclusion

By consolidating liquidity on Hydration and embedding PEN directly into Vortex’s fiat pipeline, we eliminate unnecessary middlemen, reduce overhead, and focus on real demand drivers. The PEN ecosystem stands ready — liquid, transparent, and fully aligned with a decentralised future.

Advantages of a DEX-first strategy for PEN:

• Immediate deep liquidity allows for larger trades and stabilises prices
• Fiat on-ramp and off-ramp adds ease of use, speed and lowers fees
• PEN holders can contribute to liquidity pools and receive yields generated by trading
• Full transparency of trading activity

Questions or feedback? Join the discussion on the Pendulum governance forum.

Since Pendulum’s launch in February 2022, the Tokenomics of PEN have remained unchanged. While this strategy suited the early phase of growth, the dynamic realities of the ecosystem, combined with the evolution of Polkadot and the broader blockchain landscape, call for a significant adjustment. With PEN Tokenomics 2.0, we’re aligning Pendulum’s tokenomics with the progress we’ve made and the community we’ve built, all while staying true to our vision of a decentralized and thriving Layer 1 blockchain.

Two Key Objectives

1️⃣ Stop Issuance and Minting of New PEN Tokens

One of our major goals is to simplify the tokenomics of PEN tokens and increase transparency by halting any future token issuance. Here’s how we plan to achieve this:

✔️️ Delegator Rewards: Currently, new tokens are issued to reward delegators. This issuance is already set to stop automatically after two years. So far, only a small number of tokens have been issued under this system, making the transition seamless.

✔️ Collator Rewards: To ensure a decentralized and functioning economy, collators will continue to receive rewards. However, instead of minting new tokens, these rewards will come from the existing treasury. This ensures no new tokens are added to the circulating supply.

✔️ Reducing the Total Supply: We aim to lower the current maximum cap of 200 million PEN tokens to 150 million tokens. To achieve this, we propose burning a portion of the currently minted supply (163 million tokens), including tokens from allocations such as the Crowdloan reserve, which has become obsolete due to Polkadot’s transition to the Core Time market model.

With these changes, we’re safeguarding the value of PEN while building a sustainable and decentralized economy for Pendulum.

2️⃣ Increase Decentralization of the PEN Token

The second goal of PEN Tokenomics 2.0 is to put more decision-making power into the hands of the Pendulum community.

✔️ Streamlining Allocations:

Several token allocations are no longer necessary, including:

• Crowdloan reserve for parachain slot renewals.

• Strategic sale allocation that was not utilized.

• Certain allocations for market making, marketing, and private sales.

These unused allocations have been and will be returned to the treasury.

✔️ Empowering Community Governance:

By consolidating unused token allocations into the treasury, the community will decide how these tokens are used. Whether for liquidity incentives for Spacewalk, initiatives for the DEX, or other valuable projects, the Pendulum governance process will ensure transparent and community-driven decisions.

This shift simplifies the structure, enhances transparency, and places more control in the hands of our community.

Why Now?

Over the past two years, we’ve grown and learned a lot. While Pendulum expected more builder traction and Polkadot-wide adoption initially, we are now at an exciting juncture: successfully launching the first dApps on the Pendulum Layer 1 chain. To support Pendulum’s growth, we’re suggesting tokenomics adjustments to make PEN more attractive and better aligned with our long-term goals.

Roll-out Plan

We aim to implement these changes by early next year, creating a more decentralized and sustainable future for Pendulum.

★ Vested Multi-sig-controlled allocations of 35.3m PEN in total have been returned to the community-controlled treasury on 23 Dec 2024:

🔑 1.48m PEN
🔑 2.49m PEN
🔑 4.66m PEN
🔑 12.49m PEN
🔑 8.87m PEN
🔑 5.31m PEN

★ The community-controlled treasury funds increased to 55.6m PEN. All remaining Multi-sig account controlled funds will be returned to the token holder led Pendulum treasury after vesting.

★ Delegator rewards will be stopped as planned and already enacted in the runtime with Block #5259600. Current estimate for publishing this block is May 2025, which will be the timeline we are aiming at completing Pendulum tokenomics 2.0.

★ A referendum is prepared, where delegator and collator rewards will be sent from the Treasury instead of being minted

★ Another referendum is prepared that burns excess tokens from the treasury with the aim of achieving a total issuance = max issuance = 150m PEN tokens (down from 200m PEN).

Get involved

We invite all community members to join the conversation and share their feedback! Your input is critical to shaping the future of PEN Tokenomics. Visit the Governance Discussion on Polkassembly to review the full proposal, participate in the discussion, and suggest ideas.

Thank You for Building the Future With Us

The Pendulum community is the foundation of everything we do. PEN Tokenomics 2.0 is a testament to our commitment to transparency, decentralization, and long-term growth. Together, let’s build a stronger, more vibrant ecosystem for Pendulum and beyond.

Stay tuned for more updates, and as always, thank you for your continued support! 🌟

#Pendulum #DeFi #CommunityGovernance #Web3 #token #PEN

Pendulum’s Forex AMM Points Program gives early adopters an exclusive opportunity to experience the future of decentralized Forex trading on-chain. Powered by Vortex Finance, the Forex-optimized AMM enables seamless and low-slippage swaps between various stablecoins.

Access via Pendulum’s portal: https://portal.pendulumchain.org/pendulum/nabla/swap

Participating in this Forex AMM campaign gives you a front-row seat to the next generation of Forex trading and contributes to its development. Plus, you can earn PEN Points for your participation.

Points Program Overview

The Points Program has been introduced to ensure fair and attractive rewards for early participants. A fixed amount of PEN rewards has been allocated for this program. To earn PEN tokens, participants must accumulate points through incentivized on-chain actions:

1. Performing Swaps: This generates yield for liquidity providers. The higher the swap volume, the greater the incentives for liquidity providers to join.
2. Providing Liquidity: Adding liquidity ensures deep pools, which enable efficient Forex trades.

Earning Points

Liquidity Providers

• For Swap pool LPers — 1 point for $100 worth of LP per day (worth of blocks)
• For BSP LPers — 2 points for $100 worth of LP per day

Traders

• 1 point for every $500 swapped

Rewards

Total Rewards: 100,000 PEN tokens, split between Seasons 1 and 2.

• Season 1: November 22, 2024 (block #4118040) to December 21, 2024 (block #4326830)
• Season 2: To be announced

Follow this simple guide to start earning PEN Points today:

1. Swap User Guide
2. LP User Guide

About Pendulum

Pendulum is building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. This platform bridges traditional financial services with DeFi applications, enabling functionalities like specialized Forex AMMs, lending protocols, and yield farming opportunities. Pendulum is developed by SatoshiPay.

Keep your eyes on the Pendulum!

Website | Twitter | Telegram Announcements | Telegram Community | Discord | Docs |

The Pendulum parachain announces the launch of a novel Forex AMM on the network, specially designed for stablecoins. The AMM is designed to minimize impermanent loss and slippage, by utilizing a mix of pool-based and off-chain pricing. This is a result of a close collaboration between Pendulum and Nabla Finance.

Overview

Since the launch of the Spacewalk Bridge, the first dApp to launch on the Pendulum ecosystem is the Forex AMM, powered by Vortex Finance. The innovative design allows for single-sided liquidity provisioning and minimizes impermanent loss for liquidity providers. This architecture is designed to make the AMM ideal for on-chain forex transactions.

The AMM consists of the Swap pools and the Backstop pool.

All swaps are routed through swap pools, while the backstop pool works as a security measure, ensuring safety for LPers.

Initial Specification

Assets supported (Swap Pools)

1. USDC (Asset Hub)
2. EURC.s (via Stellar)
3. axlUSDC (via Moonbeam)
4. DOT

Assets Supported (Backstop Pool)

1. USDC (Asset Hub)

Initial Limits / Caps (Swap Pools)

1. USDC (Asset Hub) — 15,000
2. EURC.s (via Stellar) — 13,500
3. axlUSDC (via Moonbeam) — 15,000
4. DOT — 3500

Initial Limits / Caps (Backstop Pool)

1. USDC (Asset Hub) — 30,000

Swap Fees

1. USDC (Asset Hub) — 0.15%
2. EURC.s (via Stellar) — 0.15%
3. axlUSDC (via Moonbeam) — 0.15%
4. DOT — 0.25%

Explore the Forex AMM here.

How the Forex AMM Works

Traditional constant function market makers (e.g. Uniswap) work well for long-tail assets but are costly for forex markets, which rely on off-chain activities. To solve this, a specialized market-making technology was developed, offering low-risk, single-sided liquidity and significantly reduced slippage compared to traditional AMMs. This technology, developed by Nabla Finance, allows Pendulum’s forex AMM to function as a Proactive Market Maker (PMM).

Liquidity providers benefit from single-sided liquidity with minimal impermanent loss, while traders can enjoy a low cost of just 0.05%-0.10%, even for trades north of $100k, making it an ideal solution for forex. Read this article for a deep-dive explanation of how the AMM works.

Pendulum’s partner, Nabla Finance, originally developed this technology. Discover more about Nabla’s journey through this interview with their co-founder.

Possibilities

Our objective for the Forex AMM (powered by Vortex Finance) is to attract substantial amount of Forex liquidity into DeFi, enabling new use cases on-chain, such as:

1. Cross-border payments: Since most cross-border payments require exchanging one currency for another, which is a substantial part of the overall cost, reducing this through an AMM optimised for forex would bring efficiency and speed to cross-border payments.
2. Currency hedging: is a risk mitigation technique that involves protecting against exchange rate fluctuations to stabilize costs or profits, and it’s essential for businesses operating globally, importers/exporters, and investors with foreign assets. The forex AMM’s single-sided liquidity feature allows businesses to hedge specific currencies without extra exposure, ensuring cost-effective and reliable risk management.
3. Simplified bookkeeping: Currency fluctuations can complicate bookkeeping, leading to discrepancies and financial uncertainty for businesses managing multiple currencies. Forex AMMs help by providing stable and predictable exchange rates with low fees and minimal slippage, reducing the impact of currency volatility on financial records.
4. New arbitrage opportunities: Forex AMMs that integrate off-chain prices create unique arbitrage opportunities compared to other DEXs, which rely solely on on-chain pool pricing. By constantly aligning prices with external forex markets, these AMMs present price discrepancies that arbitrageurs can exploit. Traders can profit by capitalizing on differences between the AMM’s rates and those of other DEXs or off-chain markets. The proactive market-making approach, with its low slippage and tight spreads, makes it easier to execute these trades efficiently.

Join the Pendulum social platforms today to contribute to building the future of decentralized Forex (DeFo)!

Reward Program

To garner and incentivize support from the Pendulum community, a two-month reward program will be launched soon with a total reward of up to 100,000 PEN tokens. Stay tuned!

Why On-chain Forex?

Forex is the world’s largest financial market, with a daily trading volume of $6.6 trillion. However, bringing Forex onto the blockchain-based DeFi ecosystem requires further infrastructure development. By channeling a significant portion of Forex liquidity into DeFi, new opportunities for integration with traditional finance will arise. In this context, Pendulum, a blockchain infrastructure designed for fiat-based financial services, has been created, with one of its flagship dApps being the Forex Automated Market Maker (AMM). Read more here to learn more about the barriers that exist in getting Forex on-chain.

About Vortex

The Ultimate Crypto to Fiat FX Solution. Dual utility with a Stablecoin Link and Forex-Optimized DEX. Developed by SatoshiPay.
Website | Twitter | Youtube | Telegram

About Pendulum

Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.

Keep your eyes on the Pendulum!

Twitter | Telegram Announcements | Telegram Community | Discord | Reddit

Welcome to our September Roundup! This month, we’ve introduced several updates, including the near launch of Forex AMM powered by Nabla and enhanced blockchain abstraction on Vortex. Explore our latest developments and partnerships that merge traditional finance with digital capabilities.

💡 Ecosystem Highlight

Forex AMM Powered by Nabla teaser

The launch of our Forex AMM powered by Nabla is imminent. Stay tuned to our X for the latest updates!

Blockchain Abstraction on Vortex

5 blockchains, 2 bridges, 1 bank account 🔀

Vortex’s offramping process effortlessly moves funds from Polygon to your EU bank account, minimizing fees and steps. The route traverses multiple platforms — Polygon, Moonbeam Network, Axelar, Squid Router, Pendulum Chain, Polkadot, Stellar, and utilizes Circle’s $EURC provided by MYKOBO.

Experience blockchain abstraction at its finest. Discover the 6 key steps here:

Asset Capacity Expanded on Spacewalk

We’ve increased our vault capacity for XLM, EURC, AUDD, and NGNC to support more asset transfers. Verify this by navigating to Spacewalk, selecting ‘Settings’, and then ‘Vault’.

Pendulum Docs Update

Our Docs have been updated to enhance user support and clarity. This includes new guides on asset redemption post-vault liquidation and recovering a vault after liquidation.

Asset Redemption Guide | Vault Recovery Guide

🤝 Partnership Announcement

Kylix Finance and Pendulum are collaborating to launch a lending product that merges traditional finance with Web3, leveraging Pendulum’s infrastructure.

🏦 Governance Referendum

• Pendulum’s Asset Registration on Interlay to create a money market for lending and borrowing with the Circle EURC.s and XLM.s tokens.
• Referendum 48 to open a bi-directional HRMP channel between Pendulum and Darwinia. Initially, its primary function will be to facilitate the seamless swapping of any parachain token on Paralink.

☎️ Community Engagement

Real World Alpha (RWA) Spaces with EMoney Recap

Highlights from the recent Space include:

• DeFi protocols employ algorithms to automate trades and tailor strategies to market trends.
• DEXes leveraging oracles for accurate real-time exchange rates.
• Enhanced blockchain app UI, now as user-friendly as Web2 applications, incorporating advanced security measures like facial recognition and 2FA.

As September concludes, we’re excited about the progress in our ecosystem, marked by new updates and strategic partnerships. We appreciate our community’s continuous support and look forward to sharing further enhancements. Keep connected for upcoming developments and opportunities in our journey.

About Amplitude

Pioneering the internet of fiat. Amplitude is the sister network of Pendulum on Kusama. It will act as a testing ground for Pendulum applications and network parameters and be powered by the AMPE token.

About Pendulum

Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.

Keep your eyes on the Pendulum!

Twitter | Telegram Announcements | Telegram Community | Discord | Reddit

The dominance of USD stablecoins in the DeFi world is obvious, but the crypto ecosystem is expanding, and non-USD stablecoins are beginning to take their place on center stage. As EVM-compatible chains, such as Ethereum and Avalanche, continue to grow, they offer a platform for the tokenization of off-chain assets, including foreign currencies. These developments mark the next step in blockchain’s maturity, presenting massive potential for global financial inclusion and efficiency.

Non-USD Stablecoins: A Growing Need

In the global financial landscape, USD continues to play a dominant role. However, for blockchain to become a truly global financial tool, it must accommodate the realities of the world’s varied currencies. Tokenizing non-USD currencies offers a significant opportunity to address the growing demand for cross-border financial services, reduce reliance on the USD, and provide better access for developing economies.

Data shows that while USD stablecoins still make up 99% of the market, this leaves significant room for growth in non-USD currencies. As developing countries adopt blockchain-based financial solutions, non-USD stablecoins offer a path forward for users and businesses looking for local currency stability in a globalized world.

The Role of EVM Chains in FX and Non-USD Stablecoin Adoption

EVM-compatible chains such as Ethereum, Polygon, Base Chain and more provide the infrastructure needed for global adoption of non-USD stablecoins. These chains are more accessible and flexible, thanks to their decentralized nature, scalability, and developer-friendly tools.

EVM chains enable the creation of dApps that facilitate cross-border payments, FX trading, and remittances. Projects like Curve, Aave, and others have leveraged the liquidity of USD stablecoins to build decentralized financial instruments. The next frontier is to integrate non-USD stablecoins and create more diverse FX markets.

By using automated market makers (AMMs) and concentrated liquidity market makers (CLMMs), on-chain protocols can provide a way to trade non-USD stablecoins, offering the possibility of better liquidity, tighter spreads, and faster settlement times compared to traditional financial systems.

Spacewalk & Vortex: Building the Bridge for Non-USD Stablecoins

Spacewalk, a bridge linking Polkadot and Stellar ecosystems, is opening the door for non-USD stablecoins to flow freely across blockchains. By connecting different blockchain networks, Spacewalk enhances liquidity and drives cross-border transactions.

Vortex is designed to simplify the conversion of crypto assets into fiat currencies, making it easier for users and businesses to interact with both traditional and decentralized financial systems. By integrating these tools with non-USD stablecoins, Vortex and Spacewalk present new opportunities for users to engage in cross-border commerce, hedge against currency volatility, and gain access to new DeFi applications.

These platforms aim to democratize access to financial tools, allowing users from different regions to benefit from the efficiencies of blockchain while maintaining the familiar use of local currencies.

Real-World Applications: Cross-Border Payments and Beyond

The promise of non-USD stablecoins lies not just in their ability to be a hedge against local currency instability but also in their potential to streamline cross-border transactions. Countries in Latin America, Africa, and Southeast Asia can use these stablecoins to conduct trade, send remittances, and stabilize local economies.

Several EVM-compatible dApps have begun leveraging these technologies to facilitate everything from cross-border payments to sophisticated trading mechanisms. For instance, dApps like Uniswap and SushiSwap on Ethereum have integrated non-USD stablecoins into their liquidity pools, allowing users worldwide to swap currencies with minimal slippage.

Non-USD stablecoins could help reduce transaction costs for small and medium-sized businesses engaged in international trade, providing them with better access to global markets. Additionally, individuals working abroad can use blockchain to remit funds home more efficiently, bypassing traditional banking systems that often charge exorbitant fees.

By reducing reliance on traditional FX markets, on-chain FX protocols and dApps on EVM-compatible chains can create competitive alternatives to systems like SWIFT and Western Union. This can significantly reduce remittance fees by as much as 80% compared with traditional instruments.

The Future of On-Chain FX and DeFi Integration

The future of on-chain FX will be driven by the development of more sophisticated financial instruments, including derivatives and synthetic assets that leverage the liquidity of non-USD stablecoins. These tools will enable individuals and institutions to hedge against currency risks and make it easier to engage in global trade.

As blockchains continue to evolve, more dApps will integrate FX and DeFi services, allowing users to tap into new liquidity pools, trade international currencies, and gain access to cross-border financial tools. The goal is to create a more inclusive financial ecosystem that empowers individuals and businesses, regardless of their geographical location.

Conclusion: A New Financial Landscape

The integration of non-USD stablecoins and FX markets on-chain represents a monumental step forward for blockchain technology. By leveraging EVM-compatible chains, Spacewalk, Vortex, and other platforms, the global financial system is becoming more accessible, efficient, and inclusive. As adoption continues to grow, these innovations promise to reshape the financial landscape, making it easier for individuals and businesses to engage in international trade, manage currency risks, and access the benefits of decentralized finance. The future is here, and it’s more connected than ever.

About Amplitude

Pioneering the internet of fiat. Amplitude is the sister network of Pendulum on Kusama. It will act as a testing ground for Pendulum applications and network parameters and be powered by the AMPE token.

About Pendulum

Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.

Keep your eyes on the Pendulum!

Twitter | Telegram Announcements | Telegram Community | Discord | Reddit

The Next Frontier: Unlocking the Potential of Non-USD Stablecoins with OnChain FX was originally published in Pendulum-Chain on Medium, where people are continuing the conversation by highlighting and responding to this story.

The divide between DeFi and traditional banking systems presents both challenges and opportunities.

This creates a growing trend for new solutions that bridge blockchain technology closer with traditional banking, thus enhancing financial inclusivity and efficiency globally.

This article discusses the need for innovative approaches that improve user experience and propel the widespread adoption of crypto payments in everyday transactions.

The Need for Crypto-Fiat Integration

The digital economy demands a framework where digital assets can move freely between crypto and fiat realms without friction. This will leverage cryptocurrencies for everything from e-commerce to remittances, demanding a fluid exchange between their digital and traditional monetary assets.

The potential for more crypto adoption revolves around stablecoins that take away the volatility of cryptocurrencies like BTC and ETH and focus the price on fiat currencies. The current stablecoin market supply is around $150 billion and the user base for stablecoins stands at 27.5 million monthly users across all chains.

Currently, the process of converting crypto to fiat is cumbersome, often involving multiple intermediaries and incurring high fees and delays. This barrier significantly hampers the potential for cryptocurrencies to be used in everyday transactions and limits their broader adoption.

The aim is to dismantle these barriers by providing a direct and regulated bridge between cryptocurrencies and bank accounts, ensuring that digital assets can be as liquid and accessible as traditional currencies, but there is work to be done.

Seamless Integration Solutions

Technological solutions like blockchain-based payment gateways or smart contract systems designed to streamline crypto-to-fiat conversions can bridge the often complex gap between cryptocurrencies and traditional banking systems.

As the digital economy evolves, seamless integration between cryptocurrencies and traditional banking systems becomes crucial. Platforms like Polkadot and Stellar are at the forefront of this integration, each offering unique mechanisms to bridge the gap between decentralized finance (DeFi) and traditional finance.

Polkadot

Polkadot facilitates a multi-chain network where various blockchains can interoperate efficiently. This capability is essential for financial institutions that need to interact with different blockchain networks or require a secure way to engage with DeFi applications.

By leveraging Polkadot’s cross-chain transfer protocol, financial institutions can securely and seamlessly connect their existing systems with emerging crypto networks, enabling features like cross-chain transactions and interoperability between different financial services.

Stellar

Stellar specializes in enabling fast and low-cost cross-border transactions, which is vital for traditional banks that handle international transfers. Through its network, Stellar provides direct integration with traditional banking infrastructures via anchors — trusted entities that issue or redeem digital assets on the Stellar network.

This setup allows for quick conversion between fiat and cryptocurrencies, facilitating smoother transitions for banks into the digital currency space.

Better integration of blockchain platforms with traditional financial systems offers several additional benefits like reduced transaction costs and times, enhanced security, and increased accessibility.

Use Cases and Real-World Application

More crypto-fiat integration will simplify transactions across various sectors, enhancing both consumer and business experiences:

Individuals can benefit from an effortless method to convert cryptocurrency holdings to fiat currency directly in their bank accounts, ideal for immediate cash needs or investment liquidity.

Merchants can utilize the platform to accept crypto payments while receiving fiat settlements, expanding their customer base without exposure to crypto volatility.

Сross-border transactions are made seamless, making the dApp invaluable for businesses dealing with international suppliers or clients by reducing transaction times and bypassing hefty banking fees.

Freelancers and small businesses in the gig economy can benefit from the new functionality and can now receive payments in various cryptocurrencies and convert them directly to local currency.

There is huge potential for a broader range of use cases in different sectors such as retail, manufacturing, and services that could benefit from better integrated crypto payment solutions.

The Future of Crypto Payments

The trajectory of crypto payments points towards a transformative impact on global finance. Experts predict an increase in their adoption could fundamentally alter traditional banking by simplifying international money transfers and enhancing financial inclusivity.

As of June 2024, USD-denominated stablecoins have a total market capitalization of $161 billion, while non-USD stablecoins account for under 0.5% of the market. This highlights the overwhelming dominance of USD stablecoins. The dollar’s diminishing dominance in the world, this can open up a window of opportunity for non-USD stablecoins.

Blockchain researcher Chris Burniske predicts that by 2025 crypto apps will have their ChatGPT moment and will be flooded by hundreds of millions of users.

As crypto payments become more integrated into daily transactions, they offer the potential to streamline global trade processes, making financial operations more efficient and accessible.

This shift could democratize financial services, enabling seamless, borderless, and cost-effective transactions that are not bound by the constraints of conventional financial systems. This would lead to a surge in global commerce efficiency, where transactions are as straightforward and rapid as sending an email.

Conclusion

Integrating cryptocurrencies with traditional fiat systems holds transformative potential, enhancing user experience, market efficiency, and economic inclusivity. This evolution paves the way for a more fluid financial landscape where transactions are not only faster and more secure but also universally accessible, breaking down barriers to economic participation.

As these technologies continue to advance, staying informed about the latest developments in blockchain technology and evolving financial regulations will be crucial for anyone looking to navigate this new terrain effectively.

About Pendulum

Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.

Keep your eyes on the Pendulum!

Website | Twitter | Telegram Announcements | Telegram Community | Discord | Docs |

Bridging the Divide: Banks and Crypto Payments was originally published in Pendulum-Chain on Medium, where people are continuing the conversation by highlighting and responding to this story.

In August, we’ve introduced several enhancements and functionalities across our products, from the efficient offramping features of Vortex to broader XLM bridging capabilities on Spacewalk. Explore our key updates that streamline the integration of DeFi and traditional finance.

💡 Ecosystem Highlight

Offramp prototype demo video on Vortex

Check out our latest offramping demo! See how Vortex seamlessly converts $USDC from EVM to a European bank account in minutes using minimal fees. The process spans three blockchains and two bridges — transforming crypto on Polygon and Axelar into EUR via Pendulum on Polkadot and MYKOBO’s Circle EURC on Stellar, right into your bank.

Step-by-Step Guide on Migration of MYKOBO EURC to Circle EURC

Since MYKOBO EURC on Stellar has been transit to Circle EURC, this guide covers two primary methods for Pendulum users to complete the transition which are:

• Using the Spacewalk Bridge and LOBSTR Wallet
• Using Stellar Decentralized Exchange (DEX)

Expanded $XLM Bridging Capacity on Spacewalk

We’ve heard your requests! The $XLM bridging capacity on Spacewalk has now been increased, allowing users to bridge over 12,000 XLM to Pendulum seamlessly.

New Assets Live on Pendulum on Subwallet

BNC, VDOT, and ASTR on Pendulum are now live in the latest Subwallet app on desktop browser extension v1.2.24.

🏦 Governance Referendum

• Referendum 34 to add Circle EURC to Spacewalk on Amplitude. This will allow users to bridge the asset from the Stellar Network to the Kusama ecosystem.
• Referendum 46 to close the HRMP channel between Pendulum and Equilibrium due to Equilibrium parachain losing its Polkadot slot lease in February 2023 and stopped producing blocks.
• Referendum 47 to accept the open channel request from Interlay and create a channel request from Pendulum end.

☎️ Community Engagement

Vortex Giveaway Campaign

The “Vortex: Ultimate Crypto-to-Fiat FX Solution” campaign is now active on TaskOn!

Participants who complete all tasks are eligible to win a portion of 150 $USDC. Five lucky winners will each receive 30 $USDC. The campaign concludes on September 4th at 17:00 CET. Start participating today!

Real World Alpha Spaces with EMoney

Pendulum Co-Founder, Alex, will join in the upcoming episode of RWA Chats together with Parag Arora, Managing Director of E-Money Network, and Sergio Mottola, Founder of Music Protocol X.

Scheduled for August 29 at 2:30 PM UTC, this session will delve into the intersection of blockchain technology and real-world asset tokenization.

💬 Community Q&A

Is Vortex a Pendulum project?

No, Vortex is not part of the Pendulum project. It’s being developed by SatoshiPay and is designed as the ultimate crypto-to-fiat FX solution. For more details, you can check out their website.

August has brought further development to our ecosystem, with updates ranging from new asset integrations to engaging community campaigns. We appreciate the continuous support of our community and look forward to bringing more enhancements in the coming months. Stay connected with us for future developments and updates!

About Amplitude

Pioneering the internet of fiat. Amplitude is the sister network of Pendulum on Kusama. It will act as a testing ground for Pendulum applications and network parameters and be powered by the AMPE token.

About Pendulum

Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.

Keep your eyes on the Pendulum!

Twitter | Telegram Announcements | Telegram Community | Discord | Reddit

July has been a month of steady progress and great developments for Pendulum ecosystem. From the upcoming SatoshiPay launch of Vortex to the Forex-AMM powered by Nabla Testnet campaign, we’ve seen advancements across multiple fronts.

💡 Ecosystem Highlight

Vortex, A Crypto to Fiat FX Solution (Coming Soon)

Vortex is set to transform financial transactions with its low-slippage Forex-optimized DEX and instant ‘Stablecoin Link’ on/off ramp. Utilizing Spacewalk and Pendulum technology built on EVM by Satoshi Pay, Vortex will enable easy local currency conversions like $BRL, $TZS, and $EURC, and direct bank transfers, all with ultra-low fees below 0.5% and no hidden fees.

🌀 Vortex isn’t just a new product — it’s a ‘Web3 Wise’ re-imagined, broadening horizons to redefine financial transactions across borders.

Follow Vortex on X for more updates!

Circle EURC is Live on Spacewalk

MYKOBO EURC on Stellar has been transit to Circle EURC. Over 25K asset holders, including those via Pendulum Spacewalk, will move to Circle EURC.

Expanded support for EURC to Eth, Avax, and Solana ecosystems is coming! Read more about this in their blogpost.

Added support for Pendulum and Assets on Fearless Wallet

Fearless Wallet now supports a broader range of assets from Pendulum and Amplitude.

Supported assets include:

• Pendulum: $HDX, $BRZ, $BNC, $USDC.axl, $ASTR, $vDOT, $USDC, $USDT, $DOT, $PINK, $PEN, $GLMR
• Amplitude: $USDT, $PICA, $KSM, $AMPE

🏦 Governance Referendum

• Referendum 42 (passed) to add Stellar EURC and axl.USDC to allow list of tokens allowance pallet. This enables these two currencies to be used with our Forex AMM.
• Referendum 43 (passed) setting thresholds for registering vaults for the DOT and Circle EURC currency pair on Spacewalk on Pendulum.
• Referendum 45 (passed) to adjust farming rewards for the PEN/GLMR and PEN/DOT pools on Zenlink Pendulum.

☎️ Community Engagement

Winners of Pendulum Forex AMM powered by Nabla Testnet Campaign

Thank you to all participants of the Forex AMM powered by Nabla Testnet campaign! 🎉

Winners have been selected, so check your DMs if you completed all tasks. We’ve contacted the 5 winners who will each receive $300 in $PEN.

Please respond by July 31st at 3 PM CET to claim your rewards! 💰

😎 KOL’s Highlight

In an enlightening discussion with TeachMeDeFi, @Pendulumalex, co-founder of Pendulum, debunked myths around blockchain, highlighting its potential to revolutionize the flawed international payment system.

The interview focused on the innovative integration of fiat currencies on-chain, enhancing cross-border payments, and streamlining the off-ramping process.

🥂 Event

Polkadot Decoded

At Polkadot Decoded 2024, Pendulum had a dedicated booth where attendees could engage directly with our team.

Our CTO, Torsten, also stepped into the spotlight to deliver an insightful talk. He discussed how blockchain isn’t just disrupting but also repairing the international payments landscape. The focus was on integrating fiat currencies seamlessly into the blockchain, improving cross-border payments, and easing the process of crypto off-ramping.

💬 Community Q&A

how does pendulum really help Forex trading?

Pendulum connects the traditional forex market to the blockchain, allowing users to trade currencies directly on a decentralized platform.

As we enter August, Pendulum continues its mission to integrate fiat and DeFi. These updates reflect our ongoing work to create a user-friendly platform for cross-border financial transactions and a better solution for on, and off-ramping. We’re grateful for our community’s support and look forward to sharing more developments soon. Stay connected with Pendulum for future updates and opportunities.

About Amplitude

Pioneering the internet of fiat. Amplitude is the sister network of Pendulum on Kusama. It will act as a testing ground for Pendulum applications and network parameters and be powered by the AMPE token.

About Pendulum

Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.

Keep your eyes on the Pendulum!

Twitter | Telegram Announcements | Telegram Community | Discord | Reddit