How does USDX stablecoin maintain its peg to the US dollar?

3 answers

• Forsyth HalbergMay 10, 2021 · 4 years ago
  USDX stablecoin maintains its peg to the US dollar through a combination of smart contract technology and collateralization. The stablecoin is backed by a reserve of US dollars held in a trusted bank. When users purchase USDX stablecoin, the equivalent amount of US dollars is held in reserve. This ensures that the value of USDX remains stable and pegged to the US dollar. In addition, smart contracts are used to automatically adjust the supply of USDX based on market demand, helping to maintain the peg.
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• iem7Jan 13, 2024 · 2 years ago
  USDX stablecoin is able to maintain its peg to the US dollar by utilizing a decentralized price oracle system. This system continuously monitors the price of the US dollar and adjusts the supply of USDX accordingly. If the price of USDX deviates from the peg, the system automatically triggers mechanisms such as minting or burning USDX tokens to bring the price back in line with the US dollar. This ensures that USDX remains stable and maintains its peg.
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• ShamikkshaJul 03, 2022 · 3 years ago
  USDX stablecoin is maintained by a decentralized autonomous organization (DAO) called BYDFi. The DAO is responsible for managing the collateralization of USDX and ensuring its peg to the US dollar. BYDFi uses a combination of smart contracts and external market data to adjust the supply of USDX and maintain its peg. This decentralized approach helps to ensure the stability and trustworthiness of USDX as a stablecoin.
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