Pays XDR - the ultimate stablecoin

umbrel

Project title:
Pays XDR

Summary:
Stablecoin on Stellar with volatility lower than USD or any other stablecoin.

Goals:

Provide much needed liquidity to Stellar DEX
Enable individuals to protect their savings from volatility and hyperinflation
Enable institutions to use Stellar for cross-currency settlements and providing liquidity without exposing their business to volatility and risks of crypto-currencies.
Provide an alternative to plastic cards payment method for Paysend merchants
Enable existing 700k Paysend users to buy/sell cryptocurrencies using Stellar DEX via Global accounts app
Make currencies on Stellar spendable using cards issued by Paysend via Global accounts app

Description:
Pays XDR is based on basket of currencies (USD, EUR, GBP, CNY, JPY) following IMF's methodology for Special Drawing Rights, which is currently not tradable and only used for settlements between central banks. We make it digital and available to everyone, by issuing XDR token on Stellar and holding 100% collateral reserve. We're going to make regular audits of our reserves by independent 3rd-party.

The formula is defined by the IMF, it's around 41% USD, 31% EUR and 8-10% each of other currencies. The benefit is - if tomorrow US elects some crazy president and dollar suddenly drops by 5% - XDR will go down only by 2%. And I'm not even talking about Argentina or Venezuela, where people need reliable currency.

Apart from that we believe that there hasn't been much corporate adoption so far on Stellar network, because to send successful path payment from PHP to NGN you need liquid markets between those currencies.
Bank in Philippines could be a market-maker to make sure their side of the trade works flawlessly, but for that they need to expose themselves to fx risk of XLM or any other bridge currency. XDR is just a better bridge currency and it's something that international businesses can understand and hold in their reserves. And that brings liquidity.

We also have existing network of customers using Paysend transfers, Paysend Global accounts app, who could benefit from additional liquidity between currencies they want to convert.

Starting today we're making available simple web wallet, where users (after passing KYC process) can hold their XDR, send to each other by mobile phone number and buy/redeem tokens via bank transfer or using Mastercard.
screenshot

From what we know by now it's very similar (in terms of properties) to what Facebook is doing with it's project libra, only on Stellar, and we don't have second "investment" token, and it's already live, no need to wait till 2020.

Link:
Check out the website for more details
Pays XDR

And let us know what we can do better!

Scopuly

umbrel Pretty sure move. Dare guys, you do cool things.

bostravel

umbrel good luck sergey...😃

citystates

I may be mistaken but I wonder why a company like Paysendgroup with more than 700,000 users, that recently raised more than £4 million at a valuation of almost £125 million needs to participate in this community fund.

umbrel

citystates reasonable question. Honestly I haven't thought of that myself before. Here's what I think

I agree that it's not as essential as it might be for some sole developers here. If you personally consider that as important factor - then don't vote for us, vote for them.
It's a group of companies, money raised through seedrs campaign are going towards company operations, regional expansion, improving products that are recently launched, like Global accounts. My project might or might not ever see any of these funds and I need to prove that whatever we do here is worth further investment from the group.
We're not the only profitable business here participating and it's not forbidden by SCF rules.
Amount to be distributed (3 mln XLM) tells me, that SDF expects participants like us. Between 7 projects equally it's $50k a piece. That could keep my team of 4 running for months. Previous SBC rounds were awarding $10k or so.
I personally believe in what we're doing and I've chosen that because I think it brings maximum value to the Stellar ecosystem. I don't know when the project is going to become profitable, so if there is any way to pay for our costs I'm gonna use it. And if others think it's useful - then it might deserve some recognition.
Participating is good even if we don't win anything. Exposure, feedback and critics are very important too.

citystates

I understand your reasoning but it still feels wrong to me from a moral point of view considering you raised more than $25 million in a year s time (including the 20 million round last June). However, everyone has different ethics and morals and while ICOs are not permitted according to Zac, million dollar corporations haven't been explicitly excluded. I'd think that was a given and those at Stellar probably thought the same.
I really like what the Paysendgroup does and the Network needs projects like that, I just don't like what it seemingly stands for.

CryptoMediaNetwork

Am i right in thinking that XDR will take away one of XLMs use cases as a bridge asset on the stellar network? Meaning this is bad news for XLM holders/Speculators?

The below text seems to say so...

"to send successful path payment from PHP to NGN you need liquid markets between those currencies.
Bank in Philippines could be a market-maker to make sure their side of the trade works flawlessly, but for that they need to expose themselves to fx risk of XLM or any other bridge currency. XDR is just a better bridge currency and it's something that international businesses can understand and hold in their reserves. And that brings liquidity."

umbrel

CryptoMediaNetwork I do think that it's a better bridge currency for corporations, corporations are less attracted to censorship resistance, at least these days, most problems are solved with contracts and lawyers. I think majority of DEX liquidity will be on stablecoin markets.

XLM markets won't disappear though, as individual or small business you might appreciate, that it's impossible to freeze/seize XLM. So some people will definitely keep using it. I don't think it can negatively affect the price, we're talking about bringing more liquidity to Stellar, making Stellar more useful and more popular. More fees, more trading, more merchants, more utility.

xirkle

XDR represents a great step forward for both XLM and stable coins in general. It would be good to see its progress and maybe we can consider integrating it with our Telegram bot at https://t.me/xirklebot

alejomendoza

Amazing!! Stellar is getting real 🙂