Stable Tokens
Stable tokens in Unit Network offer stability in the volatile cryptocurrency landscape. Here's a breakdown of their uses and mechanics:
Acquiring Stability: Users can acquire stable tokens by purchasing them from the stable token's bank using reserve assets. These reserve assets serve as the foundation, backing the stable token's value.
Alternative to Volatility: With 22 stable tokens available on Unit Network, users can find relief from the short-term volatility of mainstream cryptocurrencies. These stable tokens offer a straightforward payment solution for both users and merchants.
Support Mechanism: Each stable token on Unit Network follows a uniform collateral and pegging mechanism, without the use of complex algorithms. They're backed by diverse reserve assets that appreciate over time, benefiting from over-collateralization. Users have real-time transparency regarding the total backing value and asset distribution.
Versatility in Use: While USDU is the primary stable token on Unit Network, all stable tokens share the same functionality. They can be used for purchasing tokens or reserve assets from the exchange, liquidity pool staking, contributing to the UNIT Treasury, and providing stability as a medium of exchange or payment.
USDU and Others: USDU serves as the primary stable token, but there are 22 others, each representing a major currency. This diversity provides users with options and flexibility in choosing the stable token that best suits their needs.
In summary, stable tokens in Unit Network offer stability, transparency, and versatility in their uses, providing users with a reliable and practical solution for navigating the cryptocurrency landscape.