How is TMV stablecoin price collateralized?

The TMV stablecoin is collateralized by the ETH cryptocurrency. To emit TMV the user needs to deposit ETH.

The fact that our stablecoin is collateralized by a cryptocurrency makes it possible to regulate all the processes via blockchain only. This guarantees decentralization, which stablecoins backed by fiat money and other assets usually lack.

The mechanism of recapitalization adds up to the stability of TMV. TBox with a collateral between 106–112,9% is toxic. The users can increase the collateral of any toxic TBox with the mechanism of recapitalization and receive a reward for it. TMV are “burnt” during the process of recapitalization. This helps to avoid loss of the stablecoin’s value and keep the system’s exchange rate on the required level.

In other words, the Timvi system algorithm makes sure that only the users within the system can influence the TMV stablecoin. Thus, the stablecoin is managed by the users and it is emitted on their conditions. This eliminates the influence of any intermediaries on the Timvi system.