What is BOC?

The Bank of Cronos (BOC) is a community-owned decentralized autonomous organization with the goal of developing and maintaining decentralized financial (DeFi) protocols on the Cronos network.

Is BOC a stable coin?

BOC is not a stable coin. Rather, BOC aspires to become an algorithmic reserve currency backed by other decentralized assets in the BOC treasury. Similar to the idea of the gold standard, BOC provides free floating value its users can always fall back on, simply because of the fractional treasury reserves BOC draws its intrinsic value from.

BOC is backed, not pegged

Each BOC is backed by 1 CUSD, not pegged to it. Because the treasury backs every BOC with at least 1 CUSD, the protocol would buy back and burn BOC when it trades below 1 CUSD. This has the effect of pushing BOC price back up to 1 CUSD. BOC could always trade above 1 CUSD because there is no upper limit imposed by the protocol. Think pegged == 1, while backed >= 1.

You might say that the BOC floor price or intrinsic value is 1 CUSD. We believe that the actual price will always be 1 CUSD+ premium, but in the end that is up to the market to decide.

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