WaykiChain(WICC) WUSD Good to Know (3)|Stablecoin Relying on Public Chain will be Promising
With the rise of demand in the stablecoin market, many projects have began to try and release their own stablecoins, including from USDC and PAX to OK exchange’s USDK and Facebook’s Libra.
The emergence of stablecoin provides a solution for acceptance between different cryptocurrency assets and transactions in different scenarios, whether it appears on the exchange, in the form of a transaction pair or OTC, or in DEX, helping to achieve the trading in different application scenarios such as in DApp, stablecoin can make these realized. Besides, the most important function is to complete the pricing of currency under the premise of ensuring the constant value and price.
There are several stable coins including:
The first category: the issuance model of legal currency asset mortgage, such as USDT, TrueUSD, GUSD, PAX, USDC, USDK, etc., issued with the US dollar 1:1 mortgage.
The second category: mortgage issue on the blockchain digital asset chain, such as BitUSD, DAI.
The third category: algorithmic, such as Reserve, Terra.
It also includes Libra, which is released in the alliance chain and use macroeconomic features to keep prices stable.
How does WaykiChain’s stablecoin WUSD keep stable and safe?
First, WUSD is issued based on the WaykiChain, so when collateralizing digital assets, it is based on the WaykiChain coin WICC. In the mortgage rule, the initial mortgage needs to meet the 200% over-collateralization. For example, a user wants 100 WUSDs, and WICC worth $200 is required.
The rule is that when the mortgage assets increase, the WUSD is in an increase in purchasing power, so more WUSDs are issued. When the mortgage assets are reduced, that is, the mortgage assets are redeemed, WUSD starts to destroy.
In the process of WUSD production, WICC will be pledged in multiples of 200% in order to maintain sufficient collateral assets and the contant price of stablecoin.
Facing the fluctuating market, a stablecoin requires a sound supply chain to support. For each stablecoin, during the flow, it is necessary to establish a closed loop composed of platform, acceptor, and buyers to ensure constant circulation and stimulate a larger market scale. WaykiChain stablecoin can make it come true.
Meanwhile, The WUSD issuance agreement is based on the underlying public chain of WaykiChain. Therefore, just like the asset circulation on the chain, WUSD has the advantage of the public chain, that is, decentralization and transparency. And also, WUSD will have enough Programmability, which is a great advantage among these stablecoins. Once the market matures, WUSD may be the only coin in the stablecoins that can achieve a sustainable win-win situation !