Crypto Academy Week 7 - Homework Post for @yohan2on|| All About Paxos Standard (PAX)

It was great reading your lecture this week, @yohan2on. Thank you for your effort in explaining the ecosystem of stable coins. It is my pleasure to partake in the homework task.

I will be writing on Pax Standard (PAX) and I hope to explore it to some extent as detailed as possible.

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Introduction

PAX is a stable coin, back by USD on a 1:1 basis and accessible through Paxos. While it is pegged to USD in a one-to-one ratio, it is also redeemable to USD on the same ratio. Thus, merchants using PAX can store or convert their funds through PAX especially in a volatile market situation.

Paxos is in charge of offering the PAX token in line with the US financial regulations and they reserve the right to regulate the supply to meet up with the 1:1 basis with USD. Thus, the deposits and withdrawal of PAX is controlled by Paxos reserves.

The Basics of PAX Token

When the PAX token is reddemed to USD, the PAX is immediately removed from supply. This is to stabilize the price of PAX and maintain it’s ratio with the USD to which it is redeemed to.

Paxos, the issuer of PAX operates under the regulation of New York banking laws, thus commanding the trust of users. Her high standard is a product of the governing authority for which it is under and this ensures the security of users’ funds.

In exchange to USD deposits, Paxos offers the PAX stable coin which can easily be traded, transferred and transacted in a frictionless market place. It should be noted that the delays in transactions experienced in traditional banking systems is avoided when users use Paxos in storing their liquidity, while maintaining stability of the Pax stable coin.

Benefits of Using PAX

 PAX serves as a means of payment for blockchain-based assets, example crypto, assets and security tokens.
 In times of volatility, PAX serves as a means of conversion to a stable coin and thus ensures asset security.
 Provision of complex programming in digital assets in the midst of volatility.
 A bridge between digital assets and fiat currency transactions outside banking hours.

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Conclusion
PAX as a stable coin is one of the best, considering its use cases in the modern digital world. It is important that we explore more and thus benefit in the packages offered by the stability of funds in the midst of a volatile global market.

Thank you for your time,

Cc:
@yohan2on
@steemitblog
@steemcurator01
@steemcurator02