Innovation hub BIS in collaboration with the central banks of France, Switzerland and Singapore, he tested the hybrid automatic market maker function used on Curve v2 for operations in wholesale CBDC pools.
1/11 Project Mariana, a collaboration between the BIS Innovation Hub, Bank of France, Monetary Authority of Singapore, and Swiss National Bank, is exploring the use of @CurveFinance‘ Curve v2 HFMM for on-chain wholesale CBDC pools.
Truly a milestone for TradFi x DeFi innovation pic.twitter.com/IbUCLvxPmN
— knows 🦇🔊 (@evmknows) June 28, 2023
The initiative is implemented within the framework of Project Mariana. It marks an important milestone in the integration Tradfi and DeFi, participants acknowledged.
“The choice fell on Curve v2 [и ее HFMM] solely for experimental purposes. This does not represent an endorsement of the protocol or any of its products.” the document says.
Liquidity pools and token bonding curve are integral parts of the proposed design AMMthe document says.
As part of the project, the parties considered issues related to credit and settlement risks, as well as interoperability in tokenized foreign currency trading.
The initiative tested AMM, token standards, and network bridges. It is assumed that they can become the basis of “an international currency interbank market using wholesale CBDCs on the blockchain.” Participants noted the need to develop technical specifications.
In the model, the liquidity pool is formed by commercial banks – they act as customers for the issuance and redemption of CBDC, as well as their suppliers.
Central banks play the role of wholesale national currency issue managers and bridge operators. They also oversee the “white lists” of access to the platform.
Project Mariana launched in November 2022. The final report will be published at the end of this year.
Recall that in June MAS presented a report in which he summed up the work with BIS on Project Guardian. The initiative aims to study the compliance of tokenization and DeFi with international standards.
Earlier, BIS experts called CBDC-based tokenization the future of the global financial system, and cryptocurrencies were an erroneous branch of this process.
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