Bitcoin DeFi Project Elastos Launches BTCD, a BTC-Backed Stablecoin

According to CoinDesk, Bitcoin DeFi protocol BeL2 developer Elastos announced the launch of BTCD, a stablecoin backed by BTC.

Ahmed IJ, head of marketing at Elastos, said that BTCD is backed by Bitcoin, and the collateral amount is equivalent to 160%-200% of BTCD's value. When the price of BTCD is above $1, holders will destroy tokens to redeem BTC, causing supply to decrease and the price to decline; if it falls below $1, users deposit new BTC to mint BTCD and sell it off, increasing supply and recovering prices.