: What is Cryptousd
These types of stablecoins are the only categories that do not use any assets as backing and function like the central bank system. In fact, it uses an agreement mechanism to increase or decrease the supply of tokens, which is the same as the banknote printing process of central banks. As the total demand increases, a new supply for stablecoins is created to return prices to previous stable levels. The main goal is to get as close to ۱ 1 as possible.
Decentralized: since any modifications are made on the chain, all data about stablecoins is stored in a secure and transparent ledger.
No need for collateral: no collateral is required to create new stablecoins. Because they are created or destroyed by an algorithm, and the only way to get a stablecoin is through exchange.
Stable: since the value is automatically adjusted based on the supply and demand of the market, the prices remain stable.
How to perform transaction
The process of working with backing-free stablecoins is also convenient. In this system, the user can receive their coins after the request. To avoid the pressure of demand for price fluctuations, this is done in a very short time. After that, the possibility of trading on the network will be provided for the user.
What was the purpose of designing stablecoin cryptousd
Stablecoins were presented to the market to deal with the inherent volatility of cryptocurrencies. Unlike other digital currencies that the price of stability not possible in this the traders from the fluctuating prices Benefit Benefit. stablecoins against the price of the digital currency from investors protect their