More Languages
🇲🇽 Español
🇧🇷 Português
⭐️ 中文
PAX —— A Stablecoin Fully Backed By The US Dollar
Website **Explorer** Technical Documentation
https://www.trubit.com/pro/crypto-spot-trading/USDP/USDT
Paxos Standard (PAX) is a stablecoin that allows users to exchange US dollars for Paxos Standard Tokens to 'transact at the speed of the internet'. It aims to meld the stability of the dollar with blockchain technology. Paxos, the company behind PAX, has a charter from the New York State Department of Financial Services, which allows it to offer regulated services in the cryptoasset space.
A stable coin is a digital currency with a stable value with a certain asset as an anchor (US dollars, gold, productivity, etc.). Compared with other digital currencies (Bitcoin, Ethereum, etc.), the price of stablecoins is very stable and will not rise or fall sharply, so it can be used as a medium for storing value and exchanging value.
When it comes to stablecoins, it is impossible not to mention USDT. Because USDT is the first stablecoin to be used on a large scale, and so far USDT still occupies most of the market share of stablecoins. Tether has long dominated the legal currency token market, accounting for more than 98% of the daily stable currency trading volume. USDT has been questioned because of its undisclosed audit, suspected over-issuance, and manipulation of Bitcoin prices.
Paxos is the first cryptocurrency company to obtain charter approval from the New York State Department of Financial Services. As a licensed limited trust company with the Banking Act, Paxos is able to provide regulatory services for encrypted assets and virtual goods. PAX mainly has the following characteristics:
PAX was approved by the US government as a stable currency. In September 2018, the New York State Department of Financial Services approved the issuance of two stablecoins, GUSD and PAX. It can be said that PAX is one of the first stablecoins approved by the US government.
Seamless wallet support and exchange integration. Any merchant that has applied the ERC-20 code can provide support services for the token on its platform.
Paxos cooperates with the nation's top accounting firms to conduct regular monthly audits to ensure that the dollar balances in the aforementioned bank accounts are consistent with the amount of tokens. Withum, the top American auditing firm, will audit Paxos bank accounts holding USD deposits at the end of each month (using the standards set by the American Institute of Certified Public Accountants AICPA) to further improve the transparency of the token.
The biggest feature of stablecoins should be that they maintain price stability and can withstand market shocks. And many stablecoins have experienced large price fluctuations. For example, USDT often fluctuates significantly. Another example is DAI, which sometimes fluctuates as much as 20%.
As mentioned above, PAX adopts a legal currency mortgage model and directly exchanges 1:1 with US dollars. This design pattern is very simple and efficient, and is easily accepted by ordinary people.
The current application scenarios of PAX include:
