Purpose of Bank of Cronos

Why do we need Bank of Cronos in the first place?

The Bank of Cronos is a decentralized reserve currency protocol available on the Cronos Network based on the BOC token. Each BOC token is backed by a basket of assets (e.g., CUSD, BOC-CUSD LP Tokens etc.) in the BOC treasury, giving it an intrinsic value that it cannot fall below. The Bank of Cronos token is able to be staked to earn treasury emissions (rebases).

The Bank of Cronos also introduces a new Dollar-pegged stablecoin Cronos USD which is exclusivley backed by Cronos tokens (currently WCRO). Dollar-pegged stablecoins have become an essential part of crypto due to their lack of volatility as compared to tokens such as Bitcoin, Ether, Cronos. Users are comfortable with transacting using stablecoins knowing that they hold the same amount of purchasing power today vs. tomorrow. In the broadening world of cryptocurrencies and decentralized finance, smart contract protocols allow users to find creative ways to move capital permisionlessly. The goal of the Bank of Cronos is to assist users in acheiving Capital Effiency.

Bank of Cronos aims to solve this by creating a free-floating reserve currency, BOC, that is backed by a basket of assets. By focusing on supply growth rather than price appreciation, Bank of Cronos hopes that BOC can function as a currency that is able to hold its purchasing power regardless of market volatility.

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