📚 Concept
The crypto industry has seen the rise of various Stablecoins in the last few years. These Stablecoins have been built in different ways.
USDC, HUSD, TrueUSD are backed by fiat USD
DAI, Frax, OUSD are collateral based
SATO is a Stablecoin that is neither fiat backed or collateral based. It is purely algorithmic and relies on market forces of supply and demand to maintain its price.
"It is the next generation of Stablecoin."
Compared with many DeFi projects that attract users to speculate simply by relying on high mining returns, the future application scenarios of algorithmic stablecoins have more room for imagination. Currently, the entire algorithmic stablecoin market is still in a stage where its value is heavily underestimated, which is similar to the collateralized stablecoins such as MakerDao in early 2019. It is expected that the market will break out.
In addition, algorithmic stablecoins will be a necessity for DeFi continued growth. The core idea of DeFi is decentralization, so the DeFi world must need a stablecoin that is not endorsed by a real-world organization. Of course, the stablecoins currently owned by DeFi, such as USDT, USDC, DAI, etc., can already meet daily use and there is no strong demand for algorithmic stablecoins. However, as the market value of DeFi continues to rise, the demand for fully decentralized algorithmic stablecoins will increase dramatically. However, the current collateralization model of MakerDao is limited by the supply of ETH itself, and DAI will definitely fail to meet the demand.
AMPL, Basis Cash, ESD, Frax
At present, the market value of DeFi is growing rapidly and there are countless projects. However, there are still no more than ten products that are available for use in the algorithmic stablecoin market. The well-known algorithmic stablecoins include AMPL, Basic Cash, ESD and Frax. Among them, only the prices of AMPL and Frax can be maintained around 1 USD. Although AMPL's algorithm has been modified several times by latecomers, it is still in the leading position of algorithmic stablecoins, which is similar to the position of PoW in the main chain. Therefore, the current single currency inflation & deflation model (rebase) of AMPL has been tested by the market.
Extremely few impermanent losses
As the fluctuation of the liquidity pool price will bring impermanent losses, users will lose tokens as long as the price of a token is subjected to unilateral quotation in the DeFi mining projects. However, the stablecoin trading pairs can greatly avoid such losses.
High barrier for users to get started
Users have to spend much time on studying complex DeFi and algorithmic stablecoin configurations in order to participate in liquidity mining and buy algorithmic stablecoins. The high barrier for getting started leads to low user participation.
Less support from exchanges
Owing to the unique smart contract rebase mechanism, many pending order exchanges have not yet completed the support for rebase tokens. Currently, the exchanges that support rebase include Gate, Kucoin, Matcha (MXC) and VirgoX.
SATO is a next generation algorithmic stable coin. SATO relies on the invisible market forces of supply and demand to maintain its price stability.
USD and collateral backed Stablecoins have various flaws and are not suited to the crypto ecosystem.
USD backed Stablecoins rely on the broken monetary infrastructure of central banks to provide stability. As a result, the Stablecoin’s stability is derived from the backed currency itself. Similarly, collateral backed Stablecoins use other Stablecoins with USD backed collateral. Thus, the underlying system is still reliant on the flaws of USD backed Stablecoins.
SATO doesn’t rely on any centralized fiat currency such as USD. It can maintain its price stability algorithmically via smart contracts.
Extremely fast off-chain transactions
As the fastest gas fee-free swap algorithm platform, the system will gradually migrate from a centralized off-chain solution to Layer 2 state channel transactions in two steps. The Ethereum oracle contract has been subjected to security audit by Solidified, an audit agency.
Super simple-to-use App+Metamask experience
The "easiest to use" algorithmic stablecoin featuring smooth product operations can enable cryptocurrency investors including junior, senior, and professional investors to use it efficiently without difficulties.
The first stablecoin that adopts the AMPL algorithm + liquidity pool launch
AMPL had no concept of Uniswap’s liquidity pool mining in its early stage, so AMPL was listed on the exchanges by private placement in the form of IEO, and liquidity mining was launched half a year later. AMPL failed to catch the best moments in both the profit and the time point. When the inquiry is started, SATO will directly launch liquidity mining to enable users to enjoy dividends at the early stage and make the game process more fair and equal.
In addition to the technical analysis above, SATO is currently one of very few algorithmic stablecoin projects that have no reserve for private placement.
Project | SATO | AMPL | BAC | Frax |
Token | Single-token | Single-token | Triple-token | Double-token |
Layer 2 | Yes | No | No | No |
Multi-chain | Yes | No | No | No |
Bonds | No | No | Yes | Future |
Collateral | No | No | No | Yes |
Liquidity Pool | Yes | Yes | Yes | Yes |
