KRWb FAQ — Frequently Asked Questions
Our frequently asked questions list is meant to be a living document that improves over time. Ask us questions in the comments if you’d like them answered, or added to this list.
What is KRWb?
KRWb is an ERC-20 token that is issued at a 1:1 ratio to, and collateralized by, fiat deposits denominated in Korean Won (KRW), the national currency of South Korea. Learn more: krwb.io.
How does KRWb work?
KRWb is created based on Ethereum’s ERC-20 protocol. Functioning as a utility token, it represents the fiat KRW deposits in our treasury. More information can be found in the KRWb Whitepaper, which can be found in both Korean and English at krwb.io.
Who can mint and redeem KRWb?
At current time, only Issuance Partners have the legal ability to mint and redeem directly with the KRWb treasury. All other parties can look to the open markets on-exchange, or directly via OTC for KRWb liquidity.
What is a KRWb Issuance Partner?
Labeled as an “Issuance Partner” due to their ability to request issuance of new KRWb tokens when backed 1:1 with fiat deposits, the KRWb Issuance Partners are strategically onboarded to support KRWb distribution and liquidity.
These entities offer liquidity services to the market such as on-exchange market making, OTC (over the counter) block trading, and more to support the market demand for KRWb.
More information about Issuance Partners can be found in the KRWb whitepaper.
How does KRWb maintain it’s price peg?
The intrinsic nature and economic forces behind our Issuance Partner minting and redemptions structure was created to support price stability. KRWb is collateralized at a 1:1 ratio and Issuance Partners can only mint or redeem at such 1:1 ratio. Any redemptions of KRW come with an equivalent amount of KRWb that must be returned, burned and removed from existence. Price deviations that might arise between KRWb and KRW present an opportunity for arbitrage that drives price stability.
What are the key benefits of KRWb?
- A stable store of value that is pegged to and denominated in KRW
- Ability to participating in the global crypto-economy, while still denominating in KRW
- Cost effective value transfers
- Simplified access to the Korean crypto-economy
- Ability to use KRWb as a cost effective foreign exchange hedging product
- Over time, reduced variance of cryptocurrency prices within Korea vs. global markets
How is KRWb secured or backed?
The KRWb treasury is established onshore in Korea. The KRWb team manages the fiat KRW reserves that are used to collateralize the issuance of the KRWb tokens at a 1:1 ratio. After deposit, these funds go through a process to be locked under pledge, ensuring the funds cannot be used by KRWb team for any purpose other than upholding the 1:1 collateralization.
Furthermore, the KRWb team has developed a three-stage process to regulate the withdrawal of such funds:
- The relevant Issuance Partner must formally request to start the redemption process
- The equivalent volume of KRWb must first been returned and burned
- A trusted third party auditor will provided consent for withdrawal, according to details held in the original pledge agreements
What type of transparency or independent verification will exist?
We’re fully committed to delivering transparency in our process and our treasury balance. We have commit to using an independent 3rd party for added security. At minimum, we will publish the 3rd party attestation reports on the KRWb.io website on a regular basis with key details of each report made visible. The reports will be available in both Korean and English translations.
Do I need to be Korean, or live in Korea to use KRWb?
No. The digital tokenization process used allows KRWb to be globally accessible. There are no requirements to be Korean, have a Korean bank account, or be located onshore in Korea if an individual or corporate entity wants to use KRWb.
How can I get involved?
You can get in touch with the team, or our community via our official channels: