To give them greater stability, stablecoins are linked to other cryptocurrencies, to the trading of raw materials, such as the Petro de Venezuela, which is backed by oil.
In this case, Peronio is backed by dollars, so its value will be linked to the US currency. Its operation is guaranteed by a series of smart contracts encrypted in blockchain technology, which means that no one, not even its creators, can alter it.
The developers explained that “Peronio seeks to give users a safer savings and investment alternative than the Argentine peso, due to the volatility and instability that the local currency has suffered for decades.”
How does Peron work?
Peronio works thanks to another stablecoin: USDC, also backed in dollars and created on the Ethereum blockchain. USDC is deposited in a digital contract and for every 1 USDC sent to the vault 250 Pe (Perons) are issued.
The dollars in the vault are deposited in the Quickswap Exchange Liquidity Pool and farmed (do a repetitive action to increase profits) on QiDao, a stable open source protocol. At today’s prices they are around 15% interest.
Open source is a transparent tool characteristic of blockchain technology. This code is always open and available to be read, monitored and audited by anyone at any time. Everyone, absolutely everyone, can review it and indicate if they find any errors or even participate to solve it.
The Peronios appreciate once morest the Argentine peso as they are backed by the dollar (blue price) and once morest the same dollar due to the interests obtained by Quickswap’s Lliquidity Pool and QiDao’s Farm. The “people’s currency” can be redeemed in the vault at any time and withdraw the corresponding dollars.
To obtain them, it is necessary to have the Metamask virtual wallet. While the application for Android and iOS will also be available soon.
