How do you turn your volatile crypto assets into a stable store of value? How do you leverage your digital holdings for access to a new, secure form of money?
EOSDT’s core components work in concert to let users generate stablecoins pegged to the US dollar and backed by their own crypto holdings. The EOSDT stablecoin is a useful store of value with a variety of applications, like hedging against market turmoil, providing fiat-like quotes for currency pairs on decentralized exchanges, and even making online payments with merchants that accept cryptocurrency. It allows for more intuitive crypto transactions — one EOSDT always equals one USD.
There are four main smart contracts, operating as follows:
The market data smart contract references cryptocurrency prices from the external market through a trustline provided by Oraclize.it, Delphioracle, and LiquidApps.
The Position Smart Contract receives a user’s cryptocurrency and holds it without any human involvement or custody risk.
The Liquidation Smart Contract lets “guardians” and market participants make money by liquidating under-collateralized user positions. This happens automatically when their collateral drops below the critical level of 130%. Guardians can claim liquidated collateral or surplus EOSDT at a markdown from current market prices, an associated fee will be payable in NUT tokens, which are then redistributed back to the system.
The Governance Smart Contract lets users who hold NUT tokens submit proposals to change the EOSDT parameters on risk and stability. NUT holders can also vote for a list of EOS block producers they want to support with system’s EOS collateral. This feature drives the growth, development, and maturity of the entire EOS ecosystem.
EOS uses a delegated proof-of-stake concept, which grants the community lots of flexibility in making instant high-level decisions, like rollbacks and bug fixes, by majority among designated stakeholders. This approval voting system stakes the top 21 EOS block producers to produce blocks — EOS token holders must stake tokens for three days in order to vote. The top 21 candidates form the block-producing core, and the rest become backup block producers. Their priority is also determined by the number of votes they get.
Staking an EOS coin is like paying an opportunity cost — you can't unstake it until three days later, and you don’t have any access to it until then. This little cost grants you access to the entire EOS system. If you stake them for bandwidth, it means you can send transactions, and the size of transaction will consume your bandwidth.
EOSDT uses the EOS blockchain because it is faster than Ethereum, has near-zero transaction fees, and offers great infrastructure for implementing cross-chain solutions. It presently supports the EOS cryptocurrency.