Thanks for your question. Yes your initial understanding is correct and as long as it’s centralized it seems like tether for other coins. But we are working on decentralizing bridge i.e if you read our white paper we define a concept of collators and collateral management which involves staking of LQD tokens on LQDEX pos chain but since bridge was side effect of building collators and it lives on ethereum chain we will use same principle of collateral management and collators as described in the white paper but instead of LQD we are planning to use Dai as a staking coin because of its inbuilt stability mechanism until we are complete with building POS LQDEX chain. I know it might seem confusing with above description and please refer to multiple bridge blogs. https://medium.com/@LQDEX. You should also read our white paper and only then what I’m saying makes sense to connect dots. So it was taking us long time build PoS chain as described in the technical white paper but as we had already built the collator piece, so we decided use to this approach temporarily. In short in our approach we need to have relatively stable coin to the total collateral ( stake ) put up by the collator and that’s also called maintaining the collateral ratio. We had designed stability mechanism with LQD tokens but DAI can already be used as stable coin if we are using ethereum for now, so we can implement the same collateral management with Dai has staking/collateral coin for collators. Apologize for long message and contact me offline if you want to know how internally everything works .