by design

Whats it is ?

How it differs?

Let’s first define what is a Stablecoin and how it differs from a Cryptocurrency.

A cryptocurrency is a decentralized digital asset that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies such as Bitcoin and Ethereum have a fluctuating value and their prices are determined by market demand and supply.

Stablecoins are digital currencies, designed to maintain a stable value, usually pegged to a traditional currency like the U.S. dollar or the Euro. Unlike cryptocurrencies like Bitcoin or Ethereum, the value of stablecoins is not subject to the volatility and fluctuations of the crypto market but rather to the volatility of the underlying assets backing their value.

Typically pegged to an asset such as a fiat currency, a commodity, a fixed income portfolio, indices, securities or even or cryptocurrencies, the volatility of a stablecoin is directly correlated to the underling component it is exposed to.

Digital Asset Backed Securities are different than Stablecoins and Cryptocurrencies as they are not used for trade settlement or payment, but are merely a digital version of a ETF, buy & hold version.

We are experts in securities volatility management which is the practice of managing the level of risk associated with securities by reducing the impact of price volatility. Securities can be stocks, bonds, options, futures, or any other financial instruments that are traded in the market.

Our role is to code, source and provide algos which systematically reduce the risk of that underlying assets to which a Stablecoin and/or Digital Asset-backed Securities, is pegged. Our implication converts stablecoins into Stablercoins.

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