The DeFi sector has unfortunately lost billions of dollars to smart contract vulnerabilities. This issue largely stems from how the majority of stablecoins are currently built. Most of these digital assets function on account-based networks like Ethereum, where they are either controlled by corporate entities or operated through intricate smart contracts. Decentralized stablecoins are particularly dependent on this complicated code, which is precisely where security exploits tend to happen.

DigiDollar takes a much more secure approach by operating on $DGB, a UTXO network that shares the same foundational model as Bitcoin. Rather than building on top of the network, DigiDollar enforces its collateral requirements right at the transaction level. It does this through UTXO scripting that is baked directly into the core protocol. There are no separate virtual machines, no external bridges, and absolutely no overlying contract layers to worry about.

Because this system completely removes the smart contract layer, it effectively neutralizes the risk of the costly exploits that have traditionally plagued DeFi.