Alexander Lebedev, a Russian businessman, and ex-banker has declared his desire to launch a ruble-pegged stablecoin based on the DAI concept on Ethereum via the InDeFi platform.
Following the Blockchain Life conference earlier this week in Mexico, Sergey Mendeleev, the former Russian National Standard Bank owner and Garantex CEO, announced their desire to launch a new cryptocurrency initiative.
Mendeleev, who founded the Garantex cryptocurrency corporation, which was sanctioned by the US Treasury Department, insisted that the project has nothing to do with the Russian Central Bank’s proposed virtual ruble.
The distribution of crypto rubles will be handled by a decentralized smart contract with over-collateralization using the MakerDAO DAI algorithmic stablecoin paradigm.
MakerDAO’s technology allows users to lock ether in a smart contract and borrow DAI. The smart contract holds Ether collateral in escrow to secure the loans.
Mendeleev Defends Indefi’s Crypto-Ruble Coin
Mendeleev stated that InDeFi’s crypto-ruble will be decentralized. He also stated that a sample version of the currency is available for testing and review.
According to Mandelelev, the coin “would not only make it easier for Russian individuals to access international cryptocurrency exchanges, but will also facilitate transactions with foreign counterparties via crypto after legislative amendments.”
The crypto rubles will be distributed by a decentralized smart contract with over-collateralization, using the MakerDAO DAI algorithmic stablecoin concept.
Lebedev and Mendelelev founded Indefi in 2021 as a company that provides stablecoin loans. Meanwhile, Lebedev claims to have been researching traditional banking frauds, as he stated in an April interview. Similarly, he said that he saw cryptocurrencies as a way to avoid the dishonest mainstream banking business.
Mendeleev stated once more that InDeFi has not been performing as expected recently. “Like any other DeFi project in a declining industry,” he said, InDeFi is “searching for new forms [of commerce] and apps.”
The Central Bank of Russia may provide soft landing support for InDeFi’s debut, as the top monetary authority has been seeking options to produce creative crypto solutions in the face of penalties.