AAA Reserve is 3x more stable than USD

July 10, 2018

AAA Reserve stablecoin was first minted on January 29, 2018. Since then, the value of AAA has been reported publicly on the AAA Reserve website. As AAA Reserve is underpinned by holdings across multiple fiat currencies there is clear price discovery and transparency.

During this time the average daily volatility of AAA has been 0.000117; which is 3-times less than the daily volatility of USD compared to SDR of 0.000324 (NB: the SDR is a basket of international currencies maintained by the IMF).

Top of the charts

Comparing the charts of USD:SDR and the net asset value (NAV) of AAA demonstrates the difference in volatility since January 2018.

Chart: USD:SDR since January 2018

Chart: AAA in USD, EUR and GBP since January 2018

Theory and practice

Our whitepaper series, published in November 2017, includes an Overview of Money and Currency, which sets out how a basket of fiat holdings should exhibit less volatility than a single currency, such as USD. We predicted AAA could be less volatile than USD; and it is good to see the reality supporting the theory.

More to come?

Currently, AAA Reserve is diversified across USD, GBP and EUR; but it will extend to include other fiat currencies as the amount of AAA Reserve in circulation grows, which should further reduce its volatility.

Our aim with AAA Reserve was to create one of the most stable cryptocurrencies. It is still early days, but we are pleased with the start.

Data Sources

USD to SDR: http://www.imf.org/external/np/fin/ert/GUI/Pages/Report.aspx

AAA: www.aaareserve.com

GBP to USD: https://www.myfxbook.com/forex-market/volatility