How stable is the AAA stablecoin?

UPDATE — 1 May 2018

After a few months we thought we would re-run the analysis of the various stablecoins which are currently live. Looking at the co-efficient of variation (standard deviation divided by the mean), we are pleased to report that AAA reserve is the most stable of all the stablecoins:

Data from Jan 29 to 1 May: Source Coinmarketcap.com. AAA coin data from www.aaareserve.com/arc-nav

During this period, we have also seen the demise of Nubits, which has had significant volatililty in its pricing. It is unclear whether Nubits will be able to recover from this, but we have kept it in the analysis for now.

ORIGINAL POST: 7 February 2018

The first AAA coins were distributed just over a week ago on January 29th 2018, and we thought we’d check-in to see how the stablecoin has been performing.

There are 4 other stablecoins with performance data on Coinmarketcap. Tether was the only coin to show a smaller price change over the reference period than AAA coin:

Data from Jan 29 to 7 Feb: Source Coinmarketcap.com. AAA coin data from www.aaareserve.com/arc-nav

Whilst it is still early days, it demonstrates how an asset-backed stablecoin such as AAA coin can provide relative attractiveness to some of the other stablecoin attempts.

Questions are also raised over the sustainability of Dai: its sister governance token — MKR, which is used to remove volatility from Dai — lost over $356M (38.6%) from its marketcap during the reference period, in order to protect the volatility of the $10M marketcap of Dai.

It is worth noting that BTC dropped 35.2% and ETH dropped 39.3%. So the need for effective stablecoin(s) solutions is as important as ever.