> For the complete documentation index, see [llms.txt](https://plb.gitbook.io/paladeum-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://plb.gitbook.io/paladeum-whitepaper/paladeum/efforts-to-ensure-the-stability-of-paladeum-currency.md).

# Efforts to ensure the stability of Paladeum currency

Our core goal is to enable Paladeum Coin currency to maintain its purchasing power, have a long-term stable value, and gradually develop into a medium for large-scale transactions and savings. Therefore, Paladeum currency first needs to have a clear value, and keep its price fluctuating within a narrow range around the value. We hope that the value of Paladeum currency can be linked to the value of a legal tender. The challenge to solve this problem lies in the following two aspects. 

First, generally speaking, the exchange rate of a legal tender cannot be read directly on the blockchain. Secondly, Paladeum currency has a time-sensitive price in the secondary market and is also exogenous to the blockchain, so the agreement must rely on a decentralized method and technology to estimate the real exchange rate. The core technology to solve this problem is called the exchange rate oracle.

**The operation method of the exchange rate oracle machine is as follows:**

* Exchange rate prediction machine 
* How to use the Oracle system to divide into Paladeum Cash, which has a stable currency system, and Paladeum Coin, a variable-backed currency