💰Stablecoin

Stablecoins - Ensuring Predictable Transactions

Cryptocurrencies in general are renowned to be rather volatile therefore, to make transactions more predictable, the Modus dApp will handle project token acquisition and returns in the stablecoin $USDC. Each $USDC is backed by cash, equivalents, and short-duration U.S. treasuries, so that it is always redeemable on a 1:1 basis for US dollars. $USDC is simply a digital dollar and is therefore pegged to USD. Consequently, making it as volatile as the US dollar itself. In addition, by virtue of being ERC tokens on the Ethereum blockchain, $USDC inherits Ethereum’s KECCAK-256 encryption making all transactions secure and transparent.

Reliability of $USDC

Although there are other stablecoins available on the Ethereum blockchain, $USDC has been chosen because it is issued by the regulated financial institution Circle, sponsored by the publicly listed exchange Coinbase, and governed by Centre, a membership-based consortium that sets technical, policy and financial standards for stablecoins.

Besides, it is being adopted rapidly across the industry by hundreds of companies and quickly becoming the largest stablecoin industry ecosystem in the world. Just as $USDC is creating value for the entire blockchain ecosystem, it will help do the same for Modus.