Stable coin is a coin that are backed up by real assets. How can you prove that your coin is backed up by real assets?
Most stablecoins are divided into 2 types depending on their collateral:
1. Fiat-collateralized.
2. Crypto-collateralized.
The TMV stablecoin is over-collateralized by the ETH cryptocurrency. The user deposits funds in ETH to issue TMV and can return them at any time. In addition, the stability of TMV is supported by the special recapitalization mechanism.
Crypto-collateralized stablecoin allows to regulate all processes exclusively by blockchain. This ensures decentralization, that the fiat-collateralized stablecoins are deprived of.
Moreover, in order to collateralize stablecoins with fiat, regular audits of the accounts with collaterals are conducted. In this case, only the word of the audit company can guarantee the collateral of stablecoins. On the Timvi platform, this is solved by a system algorithm that excludes any intermediaries. In fact, the TMV stablecoin is regulated by the users of our system, and it is issued on the users’ conditions.