Its a special type of asset on the Bitshares network that uses a price feed (provided by witnesses) plus a formula defined at creation to derive its value.
The coins themselves are not issued by a central authority they are actually shorted into existence by traders putting up at least 1.95 x the face value in Bitshares. The network then tracks the value of those coins and the underlying collateral to ensure at all times the face value of the asset is able to be 'settled' / covered by the collateral that backs it. These type of assets are known as smartcoins.
you can learn more about smart coins in general HERE. if it is HERO you want this i recommend watching the video and the first two links in the resources section.
Its a special type of asset on the Bitshares network that uses a price feed (provided by witnesses) plus a formula defined at creation to derive its value.
The coins themselves are not issued by a central authority they are actually shorted into existence by traders putting up at least 1.95 x the face value in Bitshares. The network then tracks the value of those coins and the underlying collateral to ensure at all times the face value of the asset is able to be 'settled' / covered by the collateral that backs it. These type of assets are known as smartcoins.
you can learn more about smart coins in general HERE. if it is HERO you want this i recommend watching the video and the first two links in the resources section.