KRWD, a collateral asset-backed stable coin whose value is pegged against the Korean won (KRW).
KRWD is operated on a public Ehtereum blockchain. The entire KRWD in circulation under the protocol is being secured by digital assets deposited on DUCATO and DUCATO’s smart contracts back and stablize the value of KRWD. Once generated, KRWD can be freely sent to others and used as payments for goods and services on DUCATO Protocol. Unlike other cryptocurrencies with high volitility, KRWD is stable with low fluctuations in value.
The value of KRWD is pegged to KRW within the DUCATO ecosystem being fixed to 1 Won to 1 KRWD. With an increasing number of KRWD users later, its value may change when being used on other platforms such as DEX exchanges, Swap, Instant Trade or general exchanges. Having that said, the value of KRWD will not fluctuate much.
Depositing and collateralizing
Once the user deposits digital assets into DUCATO Protocols, KRWD is automatically generated by collaralizing those assets.
Paying down and liquidation
When the user wants to retrieve their digital assets (or collateral), they have to pay down the debt in KRWD. The KRWD retrieved is automatically burned to make sure that the number of KRWD under circulation in the Protocol is less than the number of KRWD generated in the process of collateralizing at the beginning.
Collateral guarantee of KRWD is activated through DUCATO Protocol’s smart contracts. As all transactions are recorded on a public blockchain, users can transparently check the latest state of transactions. The DUCATO Protocol realizes services by utilizing the early stage of Ethereum network. And Inter-Blockchin technology will be adopted in phases to support a wide range of cryptocurrencies.
Our other resources: