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Ergo and its stable currency!
Ergo is designed to be the next-generation smart contact platform, which 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-allotment of tokens to any of its members. The launch was done in a fair and equitable manner with 4.43% of revenue directed towards the growth of the ecosystem. Ergo then created a clever stablecoin solution amid the stock market crash called SigUSD. SigUSD promises to have plenty of juice to change the trend of how stablecoins operate in the crypto market.
SigUSD!
A next-generation smart contact platform, Ergo has created one of its best stablecoin solutions called SigUSD. Actually known as the SigmaUSD protocol, SigUSD is a crypto-backed decentralized algorithmic stablecoin. The stablecoin is created entirely on-chain and non-custodial, which certainly eliminates trust issues and backdoor manipulations from the minds of investors dealing with stablecoins.
SigUSD also has the distinction of having a crypto reserve which helps protect its value. It has mainly two sources of funding: Trading ERG (a token created by Ergo) for SigUSD and people trading ERG for a reserve token. This works collectively to stabilize the asset, oversize SigUSD and absorb ERG volatility. In the specifications, SigUSD is guaranteed by several 100%, allowing investors to learn more about the reserve ratio to understand the risk of holding the stablecoin. This promotes confidence among investors in the market and helps them know that the value of SigUSD is held in circulation.
How does he fight the LUNA crash?
Photo credits: Watcher Guru
The technology built by ERGO for SigUSD helps build trust and encourages investors to invest in stablecoins by eliminating their fears. The recent crypto crash which saw the stablecoin UST and its sister token LUNA fall deep into the pit, has cast a lot of doubt, among crypto assets, especially when it comes to stablecoins. The Ergo network with the SigmaUSD protocol plans to change this trend.
Writer’s report:
Ergo’s stablecoin intends to change the trend of stablecoins by convincing investors of the safety and benefits of investing in stablecoins. Following the crashes of UST and LUNA, people started avoiding stablecoins. However, efforts like Ergo’s SigUSD add even more importance to the fight to get the stablecoin back on the market as soon as possible. With so many competitions, such as BUSD, USDC, and USDT, it is up to investors to decide which is best for them, ignoring the technical aspects of these cryptos.
