A recent Medium post claims that the PEG protocol can help platforms turn their tokens into a collateral-backed stablecoins that would be volatility-resistant unlike Bitcoin, Ethereum or other assets that are not backed by any physical currency.
The new technology reportedly allows platforms to create stablecoins on the basis of any ERC20 token and peg them to any asset the creators pick.
How the PEG protocol works
Since stablecoins have become a trend and are emerging one after another, this offer of the PEG protocol may sound interesting to many crypto platforms that issue their own coins.
USDT, GUSD (Gemini Dollar), USDC, TUSD. Tether has been issuing more of its stablecoins on other ledgers, such as EOS and Tron and now intends to make a stablecoin on the basis of the Chinese yuan. Recently, a Bitcoin-pegged token launched on Binance Chain.
As per the Medium article, PEG allows making a stablecoin based on any ERC20 token and ensure that it is supported by a substantial amount of collateral. Read More at UToday...