Ergo and its stable coin!
Ergo is set out to be the next generation smart contact platform, that promises to give economic and financial freedom to ordinary people through secure, accessible and decentralized financial tools. At the time of launch in 2019, the company had no initial coin offering, no pre mine and no pre allocation of tokes to any of its member. The launch was done in true and fair manner with a 4.43% of revenues inclined towards the growth of the ecosystem. Ergo went on to create a smart stablecoin solution amidst the market crash called SigUSD. SigUSD promises to have a lot of juice in it to change the trend of the functioning of Stablecoins in the crypto market.
SigUSD!
Next Generation, smart contact platform Ergo created one of its finest solutions for stablecoins called the SigUSD. Actually known as SigmaUSD Protocol, SigUSD is a decentralized crypto backed, algorithmic stablecoin. The stable coin is created entirely on-chain and non-custodial, which certainly eliminates trust issues and backdoor manipulations from the investors mind dealing in stablecoins.
SigUSD also has a peculiar feature of having a crypto reserve that helps in protection of its value. It has majorly two funding sources: Trading ERG ( a token created by Ergo) for SigUSD and the people trading ERG for reserve token. This collectively works to stabilize the asset, overcollateralize SigUSD and absorb the volatility of ERG. In specification, SigUSD is collateralized by several 100 percent, enabling the investors to learn more about the reserve ratio to understand the risk of holding the stablecoin. This promotes trust among the investors in the market, and helps them to know that the value of SigUSD is maintained in Cirulation.
How does it combat LUNA’s crash?
Picture Credits: Watcher Guru
The technology built by ERGO for SigUSD helps in building confidence and promotes investors to invest in stablecoins eliminating their fears. The recent crypto crash which saw the stablecoin UST and its sister token LUNA fall deep into the pit, spread a lot of doubts, among crypto assets especially in regards to stablecoins. The Ergo network with SigmaUSD protocol envisions of changing this trend.
Writer’s Report:
Ergo’s stablecoin intends to change the stablecoin trend by convincing investors of the safety and benefits of investing in stablecoins. Following the crashes of UST and LUNA, people have begun to steer clear of stablecoins. However, efforts like Ergo’s SigUSD add even more importance to the fight to get stablecoin back into the market as soon as feasible. With so many competitions, such as BUSD, USDC, and USDT, it’s up to investors to decide what’s best for them, ignoring the technical aspects of these cryptos.
