What is a Universal Dollar? The Universal Dollar (U8D) is an algorithmic stablecoin asset that tracks the US dollar in a 1:1 ratio. cryptocoin.com In this article, we answered questions such as what is Universal Dollar, what is U8D for, how to get it. Now let’s examine this cryptocurrency, which is among the algorithmic stablecoins, together.
What is a Universal Dollar?
Universal Dollar (U8D) is an algorithmically pegged stablecoin based on Ethereum’s ERC-20 token standard. This cryptocurrency works in a decentralized way. It is designed to be self-balancing, inspired by the Empty Set Dollar (ESD) protocol. In this way, the Blockchain protocol avoids “death cross” situations. It also eliminates the centralization problem that stablecoins such as USDC, USDT and TUSD have. Algorithmically pegged stablecoins are designed to be native to the DeFi ecosystem.
For those who don’t know, DeFi stands for “decentralized finance”. U8D is more capital-efficient than other decentralized stablecoins with excessive collateralization requirements (such as sUSD and DAI). It also integrates seamlessly with other platforms. However, the cryptocurrency uses an algorithm called a seigniorage to balance its supply. Accordingly, if the Universal Dollar price in the market rises above 1 dollar, token is burned, if it falls, token is printed.
What does the U8D do?
The U8D is built on the Ethereum Blockchain with the ERC-20 smart contract. Therefore, it can be said that its accessibility and hostability is high. Today, many cryptocurrencies are based on Ethereum. Therefore, there are many platforms compatible with the mentioned digital assets. However, the Universal Dollar can also be used as a store of value. The asset’s value is always followed by $1. Therefore, it attracts those who want to invest in the US dollar in the cryptocurrency market.
Stablecoins also serve as a waiting zone for many large and small investors. The cryptocurrency market is extremely volatile and risky. Also, in some situations, such as a bear market, large capital losses can occur. In such cases, investors turn their cryptocurrency funds into stablecoins. Thus, they avoid risk. However, it should be noted that U8D is an algorithmic stablecoin. In May 2022, Terra’s stablecoin, TerraUSD, lost its peg to the dollar. The result was a huge wave of sales.
What is a Universal Dollar? How to get U8D?
Universal Dollar is on CoinMarketCap’s “untracked tokens” list. Therefore, we were unable to obtain data on which exchange the coin was listed on. However, the asset is currently trading at $0.17, according to a number of websites. However, if there are investors interested in the token, they can purchase cryptocurrencies with MetaMask wallets on U8D’s website.
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