Protocol Structure
Cryptocurrency stable coins have emerged as a viable alternative to traditional fiat currencies. These digital currencies provide the benefits of blockchain technology, such as fast and secure transactions, while maintaining a stable price. GUSD is a stablecoin that is built on the GatoChain blockchain, providing users with a reliable and secure way to transfer money across borders.
The GUSD protocol is designed to be user-friendly, with a simple interface that simplifies the process of buying and selling the stablecoin. The stablecoin is pegged to the US dollar, ensuring a stable price of 1 USD. The anti-flash loan and anti-manipulation mechanisms prevent market manipulation and ensure price stability, even during times of market volatility.
Moreover, the over-collateralization feature by diamonds provides an added layer of security, making GUSD a safe and reliable digital currency. The diamonds are securely stored in a Swiss vault, and the GUSD holders have the opportunity to subscribe to an on-chain live newsletter to stay updated daily about the screening of the diamonds treasury. The global financial system is complex, with a multitude of intermediaries involved in the transfer of funds across borders. This complexity has resulted in high fees and long transfer times, particularly for individuals and businesses in developing countries. This has led to a need for a safe and low fee architecture for international transfers, particularly between rich and poor countries. GUSD, with its advanced technology and diamond-backed collateralization, could be a solution to this problem.
The current financial system is dominated by large banks and financial institutions, with a complex web of intermediaries involved in the transfer of funds across borders. This has led to high fees and long transfer times, particularly for individuals and businesses in developing countries. According to the World Bank, the average cost of sending remittances to low- and middle-income countries was 6.5% in the first quarter of 2021, far higher than the United Nations' target of 3%.
These high fees have a significant impact on the ability of individuals and businesses to transfer funds across borders. For example, migrant workers who send remittances to their families in their home countries often face high fees that eat into the funds they are able to send. This can have a significant impact on the ability of families to meet their basic needs.
By providing a safe and low fee architecture for international transfers, GUSD could help to reduce the costs and complexities associated with cross-border payments. This would have a significant impact on the ability of individuals and businesses to transfer funds across borders, particularly in developing countries.
For example, migrant workers who send remittances to their families in their home countries could benefit from the low fees and fast transfer times provided by GUSD. This would enable them to send more funds to their families, improving their standard of living and contributing to economic development.
In addition, businesses in developing countries could benefit from the low fees and fast transfer times provided by GUSD. This would enable them to access international markets more easily, contributing to economic growth and development.
Overall, GUSD could be a solution to the problems associated with the current financial system, providing a safe and low fee architecture for international transfers. By providing a fast and reliable way to transfer funds across borders, GUSD could help to reduce the costs and complexities associated with cross-border payments, particularly for individuals and businesses in developing countries.
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