Altcoins Talks - Cryptocurrency Forum

Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: madbull on December 30, 2020, 10:17:21 AM

Title: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: madbull on December 30, 2020, 10:17:21 AM
I am into investing DeFi rather than just Bitcoin and Ethereum. DeFi space amuse me with its incredible capability of solving real-world problems. So, I regularly research and invest in DeFi projects. So today, I heard of new term known as "SDR". Created by IMF, it is basically combination of five well-established fiat currencies - the U.S. dollar, the Euro, the Chinese renminbi, the Japanese yen, and the British pound sterling. So, pegging certain crypto coins with SDR instead of stablecoins like USDT, USDC or DAI makes any different?

Let's discuss!
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: TomPluz on January 01, 2021, 02:34:56 PM
The way I see it is that SDR is more stable that is compared to just one currency even among the 5 just mentioned above. Hence, if a stablecoin is just pegged to USA Dollar then what can happen to the currency will certainly be affecting its future and stability. So to spread the risks and to solidify stability, pegging with the SDR can be a good idea though I still have to see as popular stablecoin pegged this way. I think I am seeing one, but it has not yet reached its critical number of users.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: pelana vreo on January 01, 2021, 11:48:10 PM
https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR
I looked far back to get this information and I have got information about SDR, SDR is different from crypto stable coins and if we connect it with DEFI, of course it is very different because SDR is still regulated by international regulations, full details of information are in the link above.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: madbull on January 04, 2021, 08:10:09 AM
The way I see it is that SDR is more stable that is compared to just one currency even among the 5 just mentioned above. Hence, if a stablecoin is just pegged to USA Dollar then what can happen to the currency will certainly be affecting its future and stability. So to spread the risks and to solidify stability, pegging with the SDR can be a good idea though I still have to see as popular stablecoin pegged this way. I think I am seeing one, but it has not yet reached its critical number of users.

Yeah, it hasn't because of new SDR concept. But I think it really makes different in crypto space. Once projects starts adopting SDR concept, I think the first adopter will enjoy the early adoption benefits. $MARK is currently the only one and they look very strong. What do you say?
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: labonikhatun on January 04, 2021, 10:30:22 AM
Avoiding market risks can give SDR crypto a much better idea but its impact on the market for being a stable currency is much less. Traders become profitable as cryptocurrencies do not fluctuate however the quality can be better if the sustainability of these projects can be maintained.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: Istiak on January 04, 2021, 12:29:34 PM
I am into investing DeFi rather than just Bitcoin and Ethereum. DeFi space amuse me with its incredible capability of solving real-world problems. So, I regularly research and invest in DeFi projects. So today, I heard of new term known as "SDR". Created by IMF, it is basically combination of five well-established fiat currencies - the U.S. dollar, the Euro, the Chinese renminbi, the Japanese yen, and the British pound sterling. So, pegging certain crypto coins with SDR instead of stablecoins like USDT, USDC or DAI makes any different?

Let's discuss!

I haven't heard about this SDR before but what you are saying that pegging with different fiat currency. There is a difference because all the stable coins price is around 1 USD but different country fiat currency has a different value. Some project peg with coinmarketcap too. So I think it should be based on the project goal.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: MUGNIA on January 04, 2021, 03:44:22 PM
5 world currencies with great value in my country, I just know the term "SDR" can you please give a description of what is SDR so I can understand it and give more comments on this
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: madbull on January 05, 2021, 05:01:53 AM
5 world currencies with great value in my country, I just know the term "SDR" can you please give a description of what is SDR so I can understand it and give more comments on this

Here you go: https: //www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: Fenix on January 05, 2021, 06:59:25 AM
In any case, providing a stablecoin with five currencies of the leading states at once will be much better for its stability than providing one currency with which something can always happen.
Cryptocurrency continues to grow rapidly. And although stablecoins can hardly be fully attributed to a cryptocurrency, they greatly simplify the work with cryptocurrency and have a rather positive effect on it. In the future, we will be able to see more different combinations of the successful use of fiat currencies and cryptocurrencies.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: StreakW on January 05, 2021, 08:06:44 AM
SDR is doesn't mean anything to me because is stable and we all know a stable coin is not an investing method. For me, I'm enough with existing stable coins and i don't need another stable coins.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: madbull on January 11, 2021, 01:53:59 PM
SDR is doesn't mean anything to me because is stable and we all know a stable coin is not an investing method. For me, I'm enough with existing stable coins and i don't need another stable coins.

SDR and stable coins are two different things. I have created the thread for pegging applications to SDR instead of other stable coins. For example, what will happen if SEC starts investigating USDT? If we have pegged to SDR, there won't be any problem. But SEC can affect the operation of stable coins easily. While SDR is made up of well-established five currencies which is great as well.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: smart_oa on January 11, 2021, 04:20:29 PM
Many rebase projects like AMPL, BASE using pegging methods to keep their token price and supply at an explainable level. But I do not think it makes anything good to the project if you are not just investing for a quick profit. But I am not very familiar with this SDR thing you are talking about here.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: madbull on January 13, 2021, 05:07:27 AM
Many rebase projects like AMPL, BASE using pegging methods to keep their token price and supply at an explainable level. But I do not think it makes anything good to the project if you are not just investing for a quick profit. But I am not very familiar with this SDR thing you are talking about here.

From investment point of view, it also depends. Pegging to something solid has less volatility and if you are here to just take short term gains, it is definitely nothing to worry about. However, long terms investments can be benefitted from such pegging concepts.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: Noverteno on November 07, 2021, 08:31:19 AM
I am into investing DeFi rather than just Bitcoin and Ethereum. DeFi space amuse me with its incredible capability of solving real-world problems. So, I regularly research and invest in DeFi projects. So today, I heard of new term known as "SDR". Created by IMF, it is basically combination of five well-established fiat currencies - the U.S. dollar, the Euro, the Chinese renminbi, the Japanese yen, and the British pound sterling. So, pegging certain crypto coins with SDR instead of stablecoins like USDT, USDC or DAI makes any different?

Let's discuss!
The information presented, in my opinion, is not enough to draw certain conclusions. If the term "SDR" means only the aggregate of the five major currencies of the world - the US dollar, the euro, the Chinese yuan, the Japanese yen and the British pound sterling, and is not exposed in some new shell, then this, in fact, does not change anything. Cryptocurrency is already equated to each of these currencies. Stablecoin is just a shell for fiat, and what is SDR is a little unclear.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: TomPluz on November 07, 2021, 05:57:25 PM
Personally, I like the idea of SDR backing up a stablecoin rather than rely on a single currency like US Dollar. SDR means you have at least five most popular fiat currencies behind your back so if something can happen to one or two, its effects can be compensated with the remaining currencies. Though of course, we don't know what can happen if there would be a global-wide crisis when all economies of the five currencies are also hit. Still, this should have been the one backing up the Tether.
Title: Re: Does pegging crypto to SDR (instead of stable coins) make any difference?
Post by: Galley on November 07, 2021, 06:27:32 PM
I am into investing DeFi rather than just Bitcoin and Ethereum. DeFi space amuse me with its incredible capability of solving real-world problems. So, I regularly research and invest in DeFi projects. So today, I heard of new term known as "SDR". Created by IMF, it is basically combination of five well-established fiat currencies - the U.S. dollar, the Euro, the Chinese renminbi, the Japanese yen, and the British pound sterling. So, pegging certain crypto coins with SDR instead of stablecoins like USDT, USDC or DAI makes any different?

Let's discuss!
The information presented, in my opinion, is not enough to draw certain conclusions. If the term "SDR" means only the aggregate of the five major currencies of the world - the US dollar, the euro, the Chinese yuan, the Japanese yen and the British pound sterling, and is not exposed in some new shell, then this, in fact, does not change anything. Cryptocurrency is already equated to each of these currencies. Stablecoin is just a shell for fiat, and what is SDR is a little unclear.

I also do not really understand what these innovations are for. In fact, the cryptocurrency is focused on pegging to the US dollar, and the rest are already playing from quotes to the dollar. What else can you think of here?