Frequently Asked Questions (FAQ)

Q: What makes USDAO different from other stablecoins? A: USDAO is uniquely backed by RWA tokens that represent real estate assets, offering a stable and secure alternative to other digital currencies.

Q: How does the collateralization work? A: When users deposit RWA tokens into the collateral vault, these tokens back the USDAO stablecoins that are minted. This collateral is continuously monitored to maintain the required ratios.

Q: What happens if the value of RWA tokens drops? A: The protocol includes a liquidation mechanism and a recovery mode to handle fluctuations, ensuring that the stablecoin remains secure and maintains its peg.