How the USDE Stablecoin Works
We use the term ‘Equilibria Protocol’ to describe our proposed ecosystem for creating the US dollar-pegged stablecoin ‘USDE’ supported by the volatile coin ‘XEQ.’ Both coins, and the supporting market transaction data, will be written into the same blockchain – currently traded as Equilibria (XEQ) – a hybrid proof of work/stake cryptocurrency based on Monero.
The Equilibria Protocol has three overall functions:
A. To determine a robust, accurate, decentralized, and difficult to manipulate issuance and redemption rate for conversions to and from USDE.
B. To assure that this issuance and redemption process, combined with normal mining and oracle node payouts, cannot result in hyperinflation and collapse of the XEQ⇌USDE ecosystem.
C. To perform correct, fair, and permanent accounting for XEQ⇌USDE issuance and redemption.
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