I need help regarding stable coin, particularly like USDT and BUSD, pegged to US Dollar. I am working on a stable coin project. The smart contract needed to be developed in solidity and deployed on Ethereum network. I have done my research and so far the points i noted are;

  • An ERC20 token contract will be developed with special permissions to particular wallet (Admin/Owner Wallet) for minting and burning tokens.
  • The company launching the stable coin is responsible for managing the USD reserves against which the tokens are minted.
  • Whenever a new user wants to get tokens, he will deposit an amount (in USD) to company reserves, and the company will mint equivalent amount of tokens for the user.
  • Whenever a user wants to cash out (get USD for his/her tokens), his/her tokens will be burned by the comapny and equivalent amount of USD will be issued to user.

So far this is what i think how pegged a stable coin works.

Am I on right track or missing something.


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.