How is SameUSD's volatility lesser than other stablecoins

1. How is SameUSD’s volatility lesser than other stablecoins? The high volatility of mainstream cryptocurrencies continues to be one of the most significant barriers against mainstream adoption and trade. The considerable uncertainty surrounding the value of crypto assets brought about the need for a "stable" cryptocurrency in the shape of stablecoins. Background Facts 1. 2. 3. Stablecoins are cryptocurrencies tied to outside assets, such as USD, gold, and even other cryptos and algorithms. However, one could easily question the stability of stablecoins if they are attached to such volatile assets themselves. Stablecoins tied to USD, such as PAX and USDT, regulated by US banks, are prone to the threat of regulatory conformity and seizure. PAXG and XAUT are linked to gold and silver, volatile assets by nature. Samecoin’s stablecoin (SameUSD) solves several problems by backing itself with a bundle reserve of stablecoins. SameUSD is insulated against the instability and insufficiency of outside assets and keeps itself completely decentralized and in line with Hayek's version of decentralization of money. Issues with other stablecoins 1. While stablecoins are also pegged with gold, silver, or some cryptocurrency, the most well-known stablecoins are anchored with the USD. Tether (USDT), the most famous stablecoin and one of the top five cryptocurrencies on CoinMarketCap, is pegged to the USD. 2. While USD is a relatively stable asset, Tether has found it hard to maintain a 1:1 ratio with the dollar. Most stablecoins would fluctuate +/-5 cents from the dollar, which can be an enormous amount in international transfers, trading, or Decentralized Finance. 3. On April 30, 2019, Tether Limited's lawyers claimed only $0.74 in cash or cash equivalents behind each Tether. Stablecoins backed with USD always run the risk of being outrun in case of high demand. 4. DAI requires a minimum of 150% in collateral of main cryptocurrencies and other stablecoins, which can be dauntingly volatile. Other stablecoins remain vulnerable to the same volatility and security issues which leaves a specific need for a truly "stable" stablecoin. The SameUSD solution SameUSD is pegged to the value of the US Dollar, but not directly, so its value is, in the truest sense, always $1. SameUSD keeps the value stable by backing it with a reserve of other stablecoins pegged to the US Dollar. SameUSD is pegged to the following top stablecoins: • • • • • • • USDT (Tether) USDC (Circle) Pax (Paxos Standard) BUSD (Binance) TUSD (Trust Token) DAI (MakerDao) HUSD (Huobi) Diversification and projections 1. In this reserve, no single stablecoin has a majority share. The account is kept safe from the inherent risks and controversies of stablecoins backed by fiat assets. This diversification of stablecoins attached to SameUSD makes it considerably less prone to volatility issues than other stablecoins. 2. The Samecoin protocol in the future will ensure SameUSD remains even more stable by employing dynamic algorithms to calculate scores for all the stablecoins on the market. This way, the weight of stablecoins in the peg basket is adjusted to decrease volatility even further. 3. Samecoin was initiated as a part of the cryptosphere to provide a diverse range of solutions within the stablecoin space. The SameUSD carries a varying amount of backing from a basket of stablecoins instead of being pegged to other assets and fiat. 4. Samecoin’s diversified backing basket ensures only minor price fluctuations, resulting in a much more "stable" stablecoin. Its underlying algorithm will dynamically adjust the backing basket of stablecoins based on their performance, ensuring even better stability. Join An Ecosystem. A Real One. facebook.com/SamecoinCom twitter.com/SamecoinCom t.me/Samecoin samecoin.com