A Bitcoin-based blocking chain Decentralized Finance (DEFI) project debuted with full support from Bitcoin
Tokens are part of an effort to build a financial system centered on the largest and oldest cryptocurrency.
ElastosThe developer of the BEL2 protocol unveiled its Bitcoin dollar (BTCD) on Wednesday.
This project aims to create digital versions of Breton Woods SystemThe post-World War II agreement pegs the US dollar to gold, making green the world’s reserve currency to promote currency stability. Elastos said it was “the heart of the reimagining (Bretton Woods).
Stablecoins is Tokens are linked to value The usual financial assets, such as fiat currencies, are usually US dollars. They are important gears in cryptocurrency machines as they cope with volatility in cryptocurrencies like Bitcoin, allowing users to hold capital in digital assets without having to consider wild price fluctuations.
The dollar-fixed stable protein is often backed by short-term U.S. Treasuries that are easily cashed out or purchased to meet volatile demands.
BTCD is backed by Bitcoin, a counterintuitive choice for tokens, which means stable value. Elastos passed the BTCD outside with more than 160%-200% worth of Bitcoin, marketing head Ahmed IJ told Coindesk in a telegram.
“Original feeds BTC-USD rates for each block,” he said. “If the cover drops to 110%, the arbitrage may pay off debts, grab BTC at a small discount and eliminate risks.
“When BTCD trades above one dollar, holders burn it to reclaim BTC, supply drops and price slides. If it drops below the US dollar, users cast and sell fresh BTC, supply goes up, prices rise.”
The development of BTC-backed Stablecoin has formed Bitcoin-driven broader developmentwhich uses the security of the Bitcoin network and the huge reserves of BTC to ensure decentralized activities in other parts of the blockchain world.
Read more: Stablecoin market may grow to $2T by the end of 2028: Standard charter
