The Flurry Protocol’s rhoTokens are backed 1:1 by these underlying stablecoins.
Tether (USDT) is a stablecoin pegged at $1 USD. It is the most widely used stablecoin, with the highest daily and monthly trading volume of any cryptocurrency. While Tether claimed to be backed 1:1 by reserves, a May 2021 report noted that Tether was mostly backed by commercial paper, rather than cash. Tether is managed by Tether Limited, a subsidiary of Tether Holdings Limited. Tether trades on the Omni Layer of the Bitcoin network, as well as on the Ethereum and Tron networks.
USDC is a stablecoin pegged at $1 USD. It is the second largest stablecoin after USDT. Launched in 2018, it is managed by a consortium called Centre, which was founded by Circle. USDC claims to be backed by fully reserved assets and approved investments. USDC reserves are attested by Grant Thornton LLP. Visa announced it would allow the use of USDC to settle transactions. USDC trades on the Ethereum, Algorand, Solana, and Tron networks.
BUSD is a stablecoin pegged at $1 USD. Created through a partnership between Binance and Paxos, it claims to be 100% backed by USD Dollars held in FDIC-insured US banks and approved and regulated by the New York State Department of Financial Services. BUSD trades on the BNB Chain and Ethereum networks.
While stablecoins are inherently stable, it’s important to note that they may fluctuate in value from time to time, which would result in the fluctuation of the rhoToken tied to it. Each one of these stablecoins has in the past had these periods of fluctuation, but ultimately stabilized at the level of 1 USD.
We use these stablecoins since they are the most developed, widely used, and common stablecoins. But they are not without their own risk.