Stable coins are very useful in many ways as the value of coin does not fluctuate... but I am curious about how they can backed stable coin with equal amount of USD without any regulations... 🤔
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Stable coins are very useful in many ways as the value of coin does not fluctuate... but I am curious about how they can backed stable coin with equal amount of USD without any regulations... 🤔
So they do this with a basket of assets or a single asset, you could take a certain amount of ETH or BTC and then over collateralise it, let's say you have 1 ETH that's around $600 and you can lock it up and get $300 in stable coins to be used as you please. the platform gets your ETH, you get the coins, and when you pay it back you can get your ETH back