EG Network smart contracts enable anyone to create a stable version of their ERC20 token. Users are then able to generate their own stabletokens by staking the volatile tokens as collateral.
Stable token technology is evolving at a rapid pace. With stable tokens like Facebook's Libra, Gemini Dollar and Tether, fiat currency collateral stored in standard banks is all that's keeping the price stable. An improvement was made in the case of MakerDao's DAI, where an on-chain mechanism stabilizes DAI's price toward its target value whenever fluctuations in ETH occur. Even DAI is limited though, in that users can only create CDPs for DAI itself. This means we can only make DAI stable, nothing else. What if there was a way to mint your own ERC-20 token, pegged to any asset of your choice?
Enter the PEG Protocol. With PEG, users can easily create a stable version of any token. The PEG protocol ensures that every issued stable token is backed by a sufficient quantity of its collateral, while allowing any actor to profit by enforcing safety margins.
PEG implements mechanisms that iterate on the functionality of DAI, with a key advancement: Any asset can be used as the stable token's collateral. For instance, someone can create a stable version of Basic Attention Token (BAT) pegged to the US dollar. As BAT is deposited into a PEG-integrated smart contract, BAT:USD is minted, allowing users to borrow against the value of BAT.