What is PegNet?PegNet is a DeFi project that supports 42 pegged assets, including 20 of the world’s top fiat currencies, 20 top crypto currencies + Gold & Silver. The decentralized oracles that secure the prices on PegNet allow the platform to provide real time conversions between these stablecoins, crypto currencies and commodities for only 1/10th of a penny cost. Users have already converted over $3 Billion USD worth of pAssets on the platform since its launch in October of 2019.
What is the PEG Token Used For?
The PEG token is the native token of the PegNet protocol and serves as a gateway into the PegNet for users to create pAssets. Users burn PEG and remove them from the supply of tokens as a means of proving the value they are adding to the network and receive in exchange an equal value of the pAsset of their choice for example pUSD, pBTC or pETH. About 400 Million PEG have already been burned since launch and have decreased the supply of PEG to around 1.8 Billion.
The PEG tokens are available on multiple blockchain platforms. The tokens available on Smart Valor are the ERC20 version and so they work easily with Ethereum wallets and infrastructure.See details on PegNet’s growing integrations with Ethereum here.
How PegNet On-chain Oracles Work?
This short video describes how the PegNet oracles are secured by miners around the world who submit new price records every 10 minutes. This approach removes all the middle men and third parties that normally provide oracle information and instead allows the user to directly interact with the protocol in their own private wallet.
Arbitrage Of pAsset PricesPegNet balances the price of pAssets between exchanges and inside the PegNet through the use of arbitrage. This diagram above shows how the arbitrage process works when the price of a pAsset is above or below its reference price. The more exchanges, traders and value move into PegNet the faster this arbitrage and balancing process takes place.
Why PegNet?Decentralized finance needs a wide variety of stablecoins and crypto assets that can be used for lending, payments and staking functions. PegNet works across multiple blockchains, is extremely cheap to use thanks to its 2nd layer integrations. Beyond that, it has no formal company or foundation and is effectively the antithesis of Libra and as a result is able to serve many emerging markets that will be last on Libra’s list to provide access to. You can read about the future of Stablecoins in this article: In summary: “The future is now clear, two types of Stablecoins will exist going forward. Those that are extensions of central banks or those that are fully decentralized, no middle ground is left. Three developments have made this obvious, first the recommendations by the Financial Stability Board, second the release of the 2.0 version of the Libra Whitepaper and third the announcement of China’s National Blockchain Committee. In order to keep operating all centralized stablecoins will become highly regulated, their monetary policy controlled by individual nations and their baskets set by the IMF or similar global banking entity. The only alternative option is highly decentralized Stablecoins which have no custody of user funds, no company, no foundation, no operator & no validators involved.” This is where PegNet comes in.
The Core Values of The PegNet CommunityDetailed in this article are the core values of PegNet community has developed before and since its launch in 2019. In summary they include:
- Universal Access
- Frictionless Conversions
- User Run Network
- Self Sovereign
- Consensus Based Oracles
- Continuous Improvement
- Regular Hardforks
- Open Development