User Case Study for Various Financial Instruments

KRWD issued by DUCATO is a stable token that has a lower price volatility. As it is pegged at 1KRW, the value is easily predictable. These allow KRWD to replace other cryptocurrencies for being used in a wide range of financial services. DeFi 2.0-oriented DUCATO provides high liquidity by combining merits of CeFi and DeFi, confidence and great speed through blockchain-based smart contracts, and security by being decentralized. Accordingly, KRWD will have a wide application in various settings described as follows.

1. Financial Derivatives

Although KRWD is issued as collateral for cryptocurrency, it can also be used as collateral for other cryptocurrency or a smart contract, or be utilized for automatic exchange, leverage, and so on.

2. Value Preservation

When the user cannot exchange their cryptocurrencies for legal tender due to a significant drop in its value triggered by changes in the cryptocurrency market, they can exchange to KRWD to stably preserve the value.

3. Decentralized Exchange

In decentralized exchanges, it is not possible to exchange any cryptocurrency for legal tender, and they use US dollar-pagged cryptocurrencies such as USDT, DAI, etc. Whereas digital assets can exchange for stable cryptocurrencies whose value is pegged to Korean legal tender by using DUCATO’s KRWD. In addition, transactions in current cryptocurrency exchanges can be simplified if they use KRWD as transaction key pair.

4. Leverage

Users can maximize rate of return by issuing KRWD after posting collateral and purchasing cryptocurrencies repeatedly when the price of cryptocurrencies is expected to rise.

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Original Medium Post: https://medium.com/@ducato.mkt/user-case-study-for-various-financial-instruments-b76b3ceaee85