RAAC, a tokenization protocol for real-world assets, has responded to recent concerns regarding pmUSD, clarifying that the redemption rights are tied to legal claims on mineral resources rather than U.S. dollars or physical gold. This clarification comes after market panic led to temporary imbalances and price deviations in the Curve pool. Despite these fluctuations, RAAC assures that the collateral remains intact and the protocol's repayment capabilities are unaffected. The company plans to restore liquidity through capital injections.
RAAC further explained that pmUSD's collateral consists of perfected titles to mineral resources, not physical gold. In the event of a default, these rights can be liquidated for recovery. The assets backing pmUSD are provided by the publicly listed company I-ON Digital.
RAAC Addresses Concerns Over pmUSD Redemption Rights
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