Stablecoin on Stellar with volatility lower than USD or any other stablecoin.
- 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
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.
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.
Check out the website for more details
And let us know what we can do better!