Pax Dollar (USDP) is a stable coin developed by Paxos Trust Company, which was founded in 2012. It is a token based on the Ethereum blockchain, which is linked to the US dollar in a ratio of 1:1. This approach makes USDP a stable cryptocurrency that can be used for trading operations, storing savings or transfers that are not subject to price fluctuations in the market.The basic principle of the functioning of Pax Dollar is that for each issued USDP token there is a corresponding amount of US dollars, which is stored in special accounts in conservative banks.
These banks are regularly audited, which ensures transparency and reliability of the system.Pax Dollar provides an opportunity for users to receive stable returns on their savings in US dollars thanks to the mechanism of automatic transfer of interest to the balance of the USDP holder.
As a stable cryptocurrency, Pax Dollar is popular as a means of payments and transfers between exchanges and trading platforms.
In some countries with restrictions on currency exchange, USDP may be a more convenient alternative to traditional methods of international transfers.One of the advantages of USDP is its transparency and security.
The decentralized nature of DeFi provides protection against possible manipulation by central organizations or governments. USDP also has the advantage of lower fees compared to traditional financial institutions, which makes it attractive to use as a means of payment or transfer of funds.