0 sats \ 2 replies \ @ama 29 Jan \ parent \ on: Where can one get a line of credit using BTC as collateral? bitcoin
Because ZUSD is backed by BTC, your collateral, not by USD like the usual stablecoins. Nobody's actually lending the money, it's actually your own.
If you pay it back in 20 years, you get your collateral back in 20 years, or you could keep borrowing more ZUSD when the collateral BTC goes up in price.
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0 sats \ 1 reply \ @OT 30 Jan
I'll have to look into it a bit more. Who prints the ZUSD then? Is it just the protocol or Sovryn?
Do you think there's any chance RBTC can lose its 1:1 peg?
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0 sats \ 0 replies \ @ama 30 Jan
Indeed, ZUSD are minted when you borrow them and burned when you give them back.
I don't think there is any chance for the peg to be broken, but when you move from the base layer there is trust involved, in the case of RSK you trust a federation (powpeg).
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