H2O in Web3 data economy is the first-ever non-pegged stable asset released on the Ocean protocol. It is the first “decentralized traffic distribution platform” supported by OCEAN and operated on Ethereum.
Stablecoins are an important category in cryptocurrency that help the traders maintain their stability during a sudden breakout or if a bearish market stays for a long time. Stability is defined as whether the predicted value is similar to its current value.
Stable coins are asset-backed holding monetary value and have high volatility compared to common cryptocurrencies like Bitcoin. Usually, stablecoins or stable assets are pegged against USD or any fiat currency to establish their value in the market.
However, the Ocean protocol’s newly launched stable asset is the first one to have been valued without being pegged.
With the increasing new launches of various technologies in Web3 to facilitate storing and processing data. H2O is an all-new addition to the Web3 data economy.
Web3 data economy
Web3 data economy refers to a system completely different from the usual data storage regulations. In web2, data is stored and accessed by big tech companies only; in Web3, the data is more decentralized and everyone in the network can access it. In short, the Web3 data economy is more transparent and open to members.
Data has always been a powerful tool for big companies and governments to manipulate and control people. As the famous story from The Economist magazine says, “The world’s most valuable resource is no longer oil, but data.”
Web3 data economy takes individuals out of this dark age by bringing members and builders together on one platform.
Ocean protocol and data economy
Ocean protocol has always been an advocate of democratizing data while protecting users’ privacy. Instead of considering users as mere pieces of data, it humanizes them by prioritizing human values.
Ocean protocol is a revolution to Web3 data economy as it introduced a brand-new stable asset that doesn’t need to be pegged to become valuable. H2O originated as an ideal asset to facilitate the trading and data asset staking process through OCEAN in the Ocean market.
H2O aims to help data providers make revenue and cost predictions reducing the risk of loss due to unpredictable trends.
By doing so, H2O will boost user engagement and rapid activity in the Ocean marketplace. In addition to the newly launched Ocean V4 and Ocean Data Farming, the Ocean protocol will also become a powerful platform in the Web3 data economy.
Poseidon (PSDN) token
Poseidon is the governance token of H2O that users can use in the Ocean protocol. PSDN holders can use this token to establish parameters and also bring value through native emissions and surplus auctions.
PSDN works as a governing entity to bootstrap ecosystem developments and helps in increasing liquidity in the protocol.
H2O recently announced rewards in PSDN. When the FLX holders stake FLX/ETH LP, they will receive a reward in PSDN. The users can also pool ETH/PSDN, ETH/H2O, OCEAN/H2O, and OCEAN/PSDN. See more details here.
To mint H2O, there are various options provided by the protocol. Users can either use SAFEs to mint H2O by depositing OCEAN as collateral.
By minting H2O, the liquidity of Ocean protocol will increase bringing more value to the token itself.
H2O: Future predictions
Ocean protocol has four versions. The protocol announced its plan to transition H2O as a multi-collateral model in V2. Ocean will back H2O with data assets. This will ensure long-term stability and expand the DeFi ecosystem.
Business Lead at H2O, Sebastian Gomez says, “We want users and builders, data providers and data scientists, to participate in the democratization of access to data. We believe this transition alone could spark a new renaissance in many industries. The full outcome of the paradigm shift is impossible to anticipate, but we know that it will be big.”
He added: “Data decentralization and democratization, and protecting its market participants from aggressive price volatility create a defining moment for society and we’re honored to be in the eye of the storm, thankful for our community and team members that believe a new path is possible. We are aware – and excited – that these changes have the potential to change everything.”
To conclude, H2O will revolutionize the data economy by changing it from being closed to transparent and stable.
H2O is the first non-pegged stable asset for the Web3 Data Economy. It is a project by Ocean protocol to facilitate the management of the float regime that serves as a channel for exchange and unit of account in decentralized data marketplaces.
H2O is mainly made to support the DAO community and bring people together on one platform. It aims to help investors and builders grab Web3 blockchain industry development opportunities.
To join the H2O community, visit channels here: https://t.co/v2hIYriDFv
- Bruno Ahualli
- Kilonova Ventures