Elastos has introduced BTCD, a Bitcoin-backed stablecoin, emphasizing the platform's commitment to innovation in decentralized finance.
Launch of BTCD and Its Significance
Elastos has launched BTCD, a stablecoin backed by Bitcoin, emphasizing its growing role in the decentralized finance ecosystem. Marketing Lead Ahmed IJ is overseeing its launch and operations.
How BTCD Works
BTCD provides stability through Bitcoin-backed mechanisms. "BTCD is backed by Bitcoin, with collateralization ranging from 160% to 200% of its value. When the price of BTCD rises above $1, holders burn tokens to redeem BTC, leading to a decrease in supply and downward price pressure. Conversely, if the price falls below $1, users deposit new BTC to mint BTCD and sell it, resulting in an increase in supply and a price recovery" - Ahmed IJ, Marketing Lead, Elastos.
Impact of BTCD on the DeFi Market
The launch of BTCD represents a pivotal step in integrating Bitcoin into decentralized finance technologies. This project aims to leverage Bitcoin's strength in stablecoin economics to stabilize the DeFi ecosystem.
The launch of BTCD signifies a growing interest in stablecoin mechanisms and the potential for Bitcoin's use in decentralized finance, fostering innovation in the DeFi space.
