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SuperNET has kept relatively quiet over the past couple of months, slowly and surely perfecting its innovations. SuperNET's latest endeavor, Pegged Asset Exchange (PAX) technology, is soon to be implemented for the first time into one of its core cryptocurrencies, BitcoinDark (BTCD). The main idea behind PAX is to facilitate the exchange of existing fiat currencies, commodities, and stocks by pegging them to a cryptocurrency. Many cryptocurrencies have attempted such a feat. However, PAX stands apart from the rest in its unique approach.

The cryptocurrency is used as a sort of middleman, connecting both sides of a given

trading pair. A position is opened and a corresponding amount of coins are burned

and removed from the coin supply. The length of the trade position is determined by

the user and long and short trades are available. When the position is closed, an

amount of coins is returned to the user that corresponds to the profit or loss resulting

from the position. For example, if a user locks 1000 coins worth $1 to 1oz GOLD worth

$1000, and in 2 week the given coin is worth $1.05 and GOLD is worth $1,155, 1,100 coins

are returned to the user. As you can see, the user has received more coins because

GOLD could purchase more coins at the new price. Refer to the infographic for a

visual representation.

PAX does not attempt to back its positions with real fiat, commodities, or stocks because there is a variable interest rate incentive integrated into the system as a means of maintaining equilibrium in the coin supply. When a majority of traders are in long positions on gold, for example, traders working towards equilibrium by taking short positions will be incentivized with variable interest rates. These short traders will receive interest up to 7.7% in addition to the gains or losses generated by their short position. Variable interest rates are only available for long-term positions. Interest on long-term positions is paid monthly and generated through fees on the exchange spread imposed on short-term positions.

All PAX-enabled trading will take place on SuperNET's InstantDEX exchange. This means fiat, commodities, and stocks can be traded against a range of cryptocurrencies listed on the InstantDEX exchange. The number of pairs that can be PAX-enabled is limitless as long as equilibrium is maintained. All revenue generated through PAX is to be distributed to BTCD stakers and crypto777 asset holders.

SuperNET's decision to implement its PAX technology for the first time in BTCD is fantastic news. More volume and more demand will be brought to the market as traders seeking to trade in a way that is completely decentralized, secure, and private without any counterparty risk will need BTCD to participate.

For more information on PAX technology, visit the PAX FAQ.

'PAX' Pegged Asset Exchange from SuperNET Aims to Bring Decentralized FOREX Trading