Token price stability mechanisms are strategies or tools used to keep the value of a digital token steady, even when market demand changes. These mechanisms can involve adjusting the supply of tokens, backing tokens with assets, or using special algorithms to control price movements. Their main purpose is to prevent large swings in token prices,…
Category: Cryptocurrency
Decentralized Funding Models
Decentralized funding models are ways of raising and distributing money without relying on a single central authority, like a bank or government. Instead, these models use technology to let groups of people pool resources, make decisions, and fund projects directly. This often involves blockchain or online platforms that enable secure and transparent transactions among many…
Staking Reward Distribution
Staking reward distribution is the process of sharing the rewards earned from staking digital assets, such as cryptocurrencies, among participants who have locked their tokens to support a network. Staking helps maintain the security and operation of blockchain networks by encouraging users to participate and keep their tokens invested. The rewards, usually paid out in…
Token Burn Strategies
Token burn strategies refer to planned methods by which cryptocurrency projects permanently remove a certain number of tokens from circulation. This is usually done to help manage the total supply and potentially increase the value of the remaining tokens. Burning tokens is often achieved by sending them to a wallet address that cannot be accessed…
Cross-Chain Atomic Swaps
Cross-chain atomic swaps are a technology that allows people to directly exchange cryptocurrencies from different blockchains without needing a central exchange or trusted third party. These swaps use special smart contracts to ensure that either both parties get what they agreed to or nothing happens at all. This process increases security and privacy, as users…
Crypto Collaterals
Crypto collaterals are digital assets, such as cryptocurrencies or tokens, that are pledged as security for a loan or other financial commitment. If the borrower cannot repay the loan, the collateral can be taken by the lender to cover losses. This system is common in decentralised finance (DeFi), where smart contracts automatically manage and enforce…
Algorithmic Stablecoins
Algorithmic stablecoins are digital currencies designed to maintain a stable value, usually pegged to a currency like the US dollar, by automatically adjusting their supply using computer programmes. Instead of being backed by reserves of cash or assets, these coins use algorithms and smart contracts to increase or decrease the number of coins in circulation….
Stablecoin Pegging Mechanisms
Stablecoin pegging mechanisms are methods used to ensure that a stablecoin keeps its value close to a specific asset, such as a fiat currency like the US dollar or the euro. These mechanisms may involve holding reserves of the asset, using algorithms to control supply, or backing the coin with other cryptocurrencies. The main goal…
Wrapped Asset Custody
Wrapped asset custody refers to the secure holding and management of wrapped assets, which are digital tokens that represent another asset on a different blockchain. Custodians ensure that each wrapped token is backed one-to-one by the original asset, maintaining trust in the system. This involves specialised processes to safely store, audit, and release the underlying…
Token Swaps
Token swaps are transactions where one digital token is exchanged for another, usually on a blockchain network. This process can happen directly between users or through automated platforms called decentralised exchanges. Token swaps make it easy for people to trade different cryptocurrencies without the need for a central authority or traditional currency exchange.