Collateralization
VuFi is a collateralized coin, where the collateral would initially be USDC. The ratio of the collateral goes up or down based on the price movement. If VuFi trades at $1.2, then the ratio would be 1.2:1. Likewise, when VuFi trades for $0.80, then the ratio would be 0.8:1. However, this may change depending on community votes in this regard. So, traders can be sure that their VuFi bond is not something created out of thin air.
Last modified 1yr ago