Intermediate: Why Silver?
BankX Pegs Its Stablecoin To Silver.
To PEG means to follow the value of an asset.
1 XSD Stablecoin = the price of 1 gram of silver
Q: Why not 1 XSD = 1 USD like other stablecoins?
A: While USD experiences inflation not seen in decades and with the federal reserve having the ability to print dollars out of thin air, backed by nothing, silver is a much better store of value.
Other reasons include:
- You cannot create silver.
- It is 9 times the supply of gold (harder to manipulate the price).
- It has many use cases (silver is used in lots of products) vs gold which typically just sits in vaults or used for jewelry.
- It is not controlled by a central government.
- The US government is trying to regulate USD-backed stablecoins. BankX is pegged to silver and will be completely decentralized.
XSD is the stablecoin. BankX is the utility token.
A utility token is a token you use to DO something.
XSD is what you get WHEN you combine BankX with ETH/BNB.
All interest is paid in BankX tokens.
You can buy/sell BankX from our liquidity pool just like any other token.
Come to the BankX dashboard, deposit your BankX + ETH on the blockchain and get XSD.
How Much BankX + ETH (Collateral) Is Needed To Create XSD (Stablecoin)?
Each person determines how much XSD they would like to mint.
Your collateral must = 100% of the amount of XSD you want to create.
Ex. You want to create $100 of XSD.
Combine $70 in ETH & $30 of BankX to get $100 of XSD.
The system tells you how much of each you need.
The more faith in the system (more demand for XSD), the more the BankX token is needed to mint XSD. This is great for the long term price appreciation of the BankX token.