Multi-asset brokerage platform eToro has begun a new initiative that uses yield farming to hand out free crypto-backed stablecoins, apparently in a bid to promote financial inclusion.
Called GoodDollar, the project will create and issue a stablecoin ($G) that can be distributed daily to registered users as a form of universal basic income (UBI).
At launch, each $G token will be backed by dai (DAI) stablecoins, although the plan is to diversify collateral so that each stablecoin is backed by a basket of cryptocurrencies.
The UBI model is sustained by supporters who deposit underlying assets onto the platform and then yield farm on supported decentralized finance (DeFi) protocols, like Compound or Aave.
Some of the accrued interest is then handed back to supporters, with the rest used as collateral for new $G tokens that are distributed each day.
GoodDollar is a non-profit funded by donations from eToro. An app and wallet have been released alongside the announcement on Tuesday.
Per the announcement, GoodDollar says hundreds of new wallets have been created in countries like South Africa and Nigeria, as well as Venezuela.
An eToro spokesperson told CoinDesk that “over 100,000 G$ have been distributed to over 250 users” during the course of a two-week trial.
Source : coindesk