What is Pax Dollar (USDP)?
PAX —— A Stablecoin Fully Backed By The US Dollar
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- Paxos Standard (PAX) is a 1:1 USD-collateralized stablecoin approved by the New York State Department of Financial Services (NYDFS). Paxos, as a company, does not charge any extra fees for the issuance and redemption.
- PAX was designed for multiple use-cases such as peer-to-peer transfers, commerce, trading, and holding.
- Paxos Standard runs on both, Ethereum as an ERC-20 token, and on the Ontology blockchain as a OEP-4 token.
Pax Dollar Key Metrics
About PAX
Paxos Standard (PAX) is a stablecoin that allows users to exchange US dollars for Paxos Standard Tokens to 'transact at the speed of the internet'. It aims to meld the stability of the dollar with blockchain technology. Paxos, the company behind PAX, has a charter from the New York State Department of Financial Services, which allows it to offer regulated services in the cryptoasset space.
What is a stable coin?
A stable coin is a digital currency with a stable value with a certain asset as an anchor (US dollars, gold, productivity, etc.). Compared with other digital currencies (Bitcoin, Ethereum, etc.), the price of stablecoins is very stable and will not rise or fall sharply, so it can be used as a medium for storing value and exchanging value.
When it comes to stablecoins, it is impossible not to mention USDT. Because USDT is the first stablecoin to be used on a large scale, and so far USDT still occupies most of the market share of stablecoins. Tether has long dominated the legal currency token market, accounting for more than 98% of the daily stable currency trading volume. USDT has been questioned because of its undisclosed audit, suspected over-issuance, and manipulation of Bitcoin prices.
Features and advantages of PAX
Paxos is the first cryptocurrency company to obtain charter approval from the New York State Department of Financial Services. As a licensed limited trust company with the Banking Act, Paxos is able to provide regulatory services for encrypted assets and virtual goods. PAX mainly has the following characteristics:
- PAX is the world's first stable currency approved and regulated by the government.
PAX was approved by the US government as a stable currency. In September 2018, the New York State Department of Financial Services approved the issuance of two stablecoins, GUSD and PAX. It can be said that PAX is one of the first stablecoins approved by the US government.
- Paxos Standard follows the standard ERC-20 protocol on Ethereum.
Seamless wallet support and exchange integration. Any merchant that has applied the ERC-20 code can provide support services for the token on its platform.
- PAX is subject to strict and transparent audits.
Paxos cooperates with the nation's top accounting firms to conduct regular monthly audits to ensure that the dollar balances in the aforementioned bank accounts are consistent with the amount of tokens. Withum, the top American auditing firm, will audit Paxos bank accounts holding USD deposits at the end of each month (using the standards set by the American Institute of Certified Public Accountants AICPA) to further improve the transparency of the token.
- The price is stable and the fluctuation range is small.
The biggest feature of stablecoins should be that they maintain price stability and can withstand market shocks. And many stablecoins have experienced large price fluctuations. For example, USDT often fluctuates significantly. Another example is DAI, which sometimes fluctuates as much as 20%.
- The design pattern is clear and concise.
As mentioned above, PAX adopts a legal currency mortgage model and directly exchanges 1:1 with US dollars. This design pattern is very simple and efficient, and is easily accepted by ordinary people.
Pax Dollar application scenarios
The current application scenarios of PAX include:
- The wallet receives and saves PAX. Anyone with an Ethereum wallet (supporting ERC-20 tokens) can send or receive Paxos Standard tokens.
- Digital asset settlement. Financial institutions and trading companies seeking to use digital assets to resist fluctuations in other digital assets, or seeking to settle transactions outside of traditional bank business hours.
- Digital asset custodians and exchanges hoping to use regulated, legal currency-guaranteed encrypted assets. And more in the future.
Pax Dollar Community and Social Channel
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