Stable coins: What are they, and how do they work?

Stable coins: What are they, and how do they work?

Feb 21, 2022 – Mexico City, Mexico – Stable coins are an important element of the cryptocurrency ecosystem. It protects traders and investors from market volatility. Stable coins, like the U.S. Dollar or any other currency, have a fixed value. This helps decrease volatility while also functioning as digital money that can be readily transferred between F.I.’s and exchanges.

Stable coins are divided into two categories: centralized and decentralized. Each of them has advantages and disadvantages. A stable coin is a digital asset much like RoRa Prime™ and RoRa Gold™ that has a fixed price and is based on an asset class or backed by Gold. This reduces holders’ exposure to market fluctuations and provides store safe and steady digital money.

Stable coins, as their name suggests, sit in the middle ground between keeping assets and withdrawing to fiat currency. They are also quite useful for executing cross-border payments because of their fixed value. They assist with reducing volatility compared to crypto coins like Bitcoin because they are linked to reserved assets such as Gold and precious gems.

Stable coins that are based on a centralized platform are usually fiat-collateralized off-chain. These stable coins are most often linked to a third-party custodian such as a bank. In centralized stable coins, the goal is for assets and liabilities to be backed by 1:1. RoRa Prime™ and RoRa Gold™ are two new excellent editions currently in pre-ICO. These cryptocurrencies are like IOUs tokenized and put on a blockchain, such as Ethereum. Stable coins are kept in equilibrium using minting and redemption procedures. Asset holders may create stable coins by classifying their assets and then using them for LTV loans on their assets under this system.

Decentralized stable coins are completely transparent and non-custodial. Nobody has authority over decentralized stable coins. Furthermore, the backing of all assets is apparent to all since the funds are stored on a publicly verifiable blockchain. This allows the stable coin to be trustless and safe, with only one person controlling the money. Stable coins are also known as “crypto-collateralized” or “algorithmic” money. Stable coins can be broken down into two categories: crypto-collateralized and algorithmic. The minting and burning of stable coins are controlled by a central authority. On the other hand, algorithmic stable coins use smart contracts or algorithmic market operations controllers (AMOCs) to manage their supply automatically.

Benefits of Stable coins

Reduce volatility:

It might be difficult to anticipate the price of cryptocurrencies like Bitcoin or Ethereum when they fluctuate widely. There is no promise that the value of the coin will change. Stable coins, on the other hand, are linked to more predictable measures like Gold and gems and provide buyers and sellers security that their assets’ value won’t suddenly plummet.

To trade or store assets:

There is no need to have a bank account to store stable coins. They are also simple to move around the world. Stable coins’ value may be easily transferred across borders, including where the U.S. dollar might be difficult to come by or where the local currency is volatile.

Transfer money cheaply:

It’s quite easy to move stable coins. As a result, millions of dollars’ worth of RoRa and other cryptocurrencies have been moved with minimal transfer costs.

Send to any country:

Stable coins have a quick transaction time and minimal transaction costs compared to sending conventional money. As a result, they’re an excellent alternative for transferring funds worldwide. 

About RoRa Corp:

RoRa Corp is a group of innovators who have harnessed blockchain technology to identify and reduce the costly inefficiencies and outdated processes that have plagued previous models. The firm was established by bankers, crypto experts, Fintech consultants, and other alternative investment gurus. RoRa Corp is blazing the trail for digital monetization, which allows asset holders and FI’s to purchase and profit from stable coins and gold coins for their assets. Our end goal is to allow 10 million investors and premium asset holders to participate in the economic growth that a blockchain future promises.

Media Contact
Company Name: RoRa Corp
Contact Person: Alessandro Dos Santos
Email: Send Email
Phone: +18338530322
Address:Av. Ejército Nacional Mexicano 453, Chapultepec Morales, Granada, Miguel Hidalgo
City: 1 1520 Ciudad de México, CDMX
Country: Mexico
Website: www.roracoin.com