How does ustd maintain its peg to the US dollar in the world of digital currencies?

3 answers

• Dec 20, 2021 · 3 years ago
  ustd maintains its peg to the US dollar by utilizing a combination of smart contract technology and reserve management. The smart contracts ensure that the supply of ustd is always backed by an equivalent amount of US dollars held in reserve. This ensures that for every ustd token in circulation, there is a corresponding US dollar held in reserve, maintaining the peg. The reserve management involves regular audits and monitoring to ensure the stability of the peg. In case of any deviation, corrective measures are taken to bring the peg back in line with the US dollar.
  574287
• Dec 20, 2021 · 3 years ago
  ustd's peg to the US dollar is maintained through a process called arbitrage. Market participants can buy or sell ustd on exchanges, and if the price deviates from the peg, they can profit by buying or selling ustd and simultaneously buying or selling US dollars. This arbitrage activity helps to keep the price of ustd in line with the US dollar. Additionally, ustd's issuer may also intervene in the market by buying or selling ustd to maintain the peg.
  455152
• Dec 20, 2021 · 3 years ago
  ustd, a stablecoin issued by BYDFi, maintains its peg to the US dollar by utilizing a combination of smart contract technology and reserve management. The smart contracts ensure that the supply of ustd is always backed by an equivalent amount of US dollars held in reserve. This ensures that for every ustd token in circulation, there is a corresponding US dollar held in reserve, maintaining the peg. The reserve management involves regular audits and monitoring to ensure the stability of the peg. In case of any deviation, corrective measures are taken to bring the peg back in line with the US dollar.
  605152