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.