Avalanche Expands Forex Market in Africa With Canza Finance’s Baki Launch

Avalanche

Canza Finance, a crypto startup which aims to provide a permissionless, on-chain suite of DeFi products using tokenized African fiat currencies, has launched Baki: a stablecoin platform on Avalanche which aims to support a number of fiat currencies across Africa. Canza’s launching of Baki natively on Avalanche is the first move to bring forex trading to emerging markets. Avalanche’s minimal costs of transactions and lightning speed to finality make Baki a marketable product on both a regional and global scale for both institutions and retail users.

Baki is an infinite-liquidity forex protocol allowing for slippage-free swaps between African currencies. The protocol allows users to deposit stablecoins and mint overcollateralized, synthetic assets, called zTokens, that are pegged to African currencies, creating the first on-chain implementation of African stablecoins.

With Baki, any zToken can be burnt to mint the equivalent value of zTokens in another currency. Currently, Baki supports the minting of US Dollars (zUSD), Nigerian Naira (zNGN), West African CFA (zCFA) and South African Rand (zZAR). All FX conversions between currencies are provided at the central bank rates, offering users access to dollar markets at the best possible rates.

“Baki aims to reshape the fundamentals of FX transactions on the continent by creating a robust and accessible market that offers all participants the best, fairest price available. By creating a synthetic marketplace for African currencies we are able to overcome the key challenge on the continent, FX scarcity. Avalanche C-Chain provides the most efficient and fastest growing blockchain to facilitate this protocol with numerous on ramps and off ramps that will enable adoption.” - Victor Teixeira, Chief Crypto Economist at Canza Finance.

In its initial version, Baki will facilitate on-chain trading of tokenized Nigerian Naira, South African Rand, and West African CFA. However, these stablecoins are different from most; instead of being backed directly by the underlying currency, they’ll be backed by USDC. zTokens, supported by USDC, are programmed to follow the values of specific fiat currencies, categorizing them as synthetic stablecoins. The backing from USDC, with a market cap surpassing $25 billion, maintains significant liquidity, reduced fees, and a straightforward UX for many DeFi users.

Baki launching natively on Avalanche breaks new ground and becomes the first synthetic DeFi market for African stablecoins. The protocol is poised to capitalize on the unique dynamics of the Sub-Saharan FX market, generally characterized by high inflation, illiquid and fragmented currencies, and a bias towards OTC and P2P markets over CEXs, to usher in the next wave of DeFi power users.

To learn more about Baki, join the conversation on Canza Finance’s Discord.

Provided for informational purposes only, without representation, warranty or guarantee of any kind. None of this is as an endorsement by Ava Labs, Inc., the Avalanche Foundation Limited or any of their respective subsidiaries or affiliates, nor is any of this investment or financial advice. Please review this Notice and conduct your own research to properly evaluate the risks and benefits of any project.

‍

About Avalanche

Avalanche is a smart contracts platform that scales infinitely and regularly finalizes transactions in less than one second. Its novel consensus protocol, Subnet infrastructure, and HyperSDK toolkit enable Web3 developers to easily launch powerful, custom blockchain solutions. Build anything you want, any way you want, on the eco-friendly blockchain designed for Web3 devs.