USD Bancor (USDB)

USD Bancor (USDB) is a stable token created using the PEG Network smart contracts. The PEG Protocol allows users to easily create stable tokens by using any asset as collateral. USDB, the first use-case of the PEG Protocol, enables users to access the Bancor Liquidity Network without direct exposure to BNT (Bancor’s Network Token). By creating a stable version of the token, users can participate in the network without having to speculate on its potentially volatile token.

The PEG Protocol builds upon the functionality of existing stable tokens, such as DAI, by allowing any asset to be used as collateral for creating stable tokens. This means that users can create stable versions of tokens pegged to any asset. For example, a stable version of the Basic Attention Token (BAT) can be created pegged to the US dollar, allowing users to borrow against the value of BAT. The PEG Protocol ensures that every issued stable token is backed by a sufficient quantity of its collateral while allowing participants to profit by enforcing safety margins.

USDB, the stable token pegged to the US dollar, is launched as a first use-case of the PEG Protocol. It is a stable version of BNT, Bancor’s Network Token, and allows users to provide decentralized liquidity on the Bancor Liquidity Network using a stable token. As users connect to Bancor through USDB-based pools, the demand for BNT as collateral increases, potentially improving returns for liquidity providers and highlighting the potential of stable tokens to serve the needs of speculators and real users. The PEG Protocol continuously evolves and aims to become the de-facto framework for stable token creation and management on various networks and blockchains.