Introducing SigmaUSD.io a UTxO-based stable coin - an instantiation of the AgeUSD protocol. Its economic model designed in partnership between IOHK, Ergo, and Emurgo maintains the conservative settings for collateral reserves and avoids the need for liquidations. Along with that, it supports a fully decentralised stablecoin emission setup.

SigmaUSD represents a call option on the dollar value of ERG held in reserve. It uses Ergo's oracle pools infrastructure to calculate and adjust the current ERG/USD exchange rate. Reserve always backs sigma USD. The price ERG/USD floats (up/down) as users trade ERG.