Tezos (XTZ) Eyes Ethereum DeFi Market Share with Wrapped ETH
StableTech, a Tezos group, is now trying to get the DeFi users’ attention in its move to wrap ETH tokens and run them on the Tezos blockchain. The organization is targeting DeFi users who are unhappy with the high fees and slow transactions on the Ethereum network.
Tezos Aims to Provide A Low-Cost DeFi Alternative to Ethereum
According to a post published by StableTech Founder and Wealthchain CEO Kevin Mehrabi, ETHtz tokens are now active and live on the Tezos mainnet, with the campaign launched on December 12. This will enable Tezos users to purchase native tokens tightened or pegged to the price of ETH. Wealthchain is one of the companies that support StableTech, which is a group of developers committed to developing DeFi on the Tezos blockchain. The ETHtz contract launch was first declared on Twitter by Wealthchain CEO.
Kevin Mehrabi further explained that DeFi trading that is dependent on the Ethereum market will shift to the Tezos DeFi environment for very solid monetary goals and that ETHtz will be a pivotal road for this. It seems that. along with wallets and exchanges, the inclusion of ETHtz is the newest endeavor from Tezos to take the DeFi action away from the Ethereum network and onto its own blockchain as a lower-fee alternative.
“It’s a solution for Etheruem holders to be able to trade ETH without depleting it in outrageous gas fees. It also shows that we’re in it to win it.”
In the next few days, StableTech is anticipated to launch TEZEX: Bridge, a token wrapping set that will allow the minting of ETHtz from ETH tokens. And after that, they intend to release a Tezos-wrapped Bitcoin as well.
Mehrabi: Ethereum Lacks Necessary Elements
Mehrabi also stated that despite Ethereum’s achievements and its continuing Ethereum 2.0 upgrade, the platform still needs basic elements that would make it a satisfactory platform for traders and investors to engage in a much more balanced DeFi scene.
The Tezos blockchain has been improving on all aspects that are required of a DeFi-suited platform. As a part of its development program, the Tezos platform has reduced the gas fees price in its Tezos’ Delphi upgrade. According to the post, the transaction on the Tezos platform now takes less than 1% of the price of a similar transaction on Ethereum. This could mean that the network could steal a portion of the DeFi market, especially when gas fees on Ethereum spike.
The blog post further stated that the Tezos team has developed a solution to start the method of moving billions of dollars of profit from the Ethereum market.