Komodo launches stablecoin module collateralized with BTC-based assets
Komodo, a multi-chain architecture project that lets users build their own customizable, sovereign, and independent blockchains or “Smart Chains” today announced the rollout of new features that allow for the creation of stablecoins collateralized with Bitcoin protocol-based cryptocurrencies. Using the newly unveiled “Prices” and “Pegs” Antara Modules, Komodo Smart Chains will now offer the creation of stablecoins, or cryptocurrencies that are tied to the price of external assets like the USD or stocks.
Pegs Module
Using a collateralized debt/loan system, Pegs allow users of a Smart Chain to transfer the value of a cryptocurrency such as Bitcoin itself, or Komodo’s own KMD, into a stablecoin that is governed by the Smart Chain’s decentralized network. Users can lock Bitcoin-protocol based funds to the Pegs Module, which then allows them to withdraw up to 90% of the fund’s worth in stablecoins, which they can then exchange for other assets with other users on the stablecoin network.