Stability and Reputation

Stablecoins with proven track records of maintaining their peg under various market conditions will be considered as suitable reserves for OUSD using the following quantitative characteristics. The reputation of the issuing firm will also be evaluated to ensure the market confidence in OUSD as a means of exchange and store of value monetary premium asset.

  • Peg Deviation Threshold:

    • Define a maximum allowable deviation from the peg that naturally occurs from healthy activity through Automated Market Maker protocols (e.g., ±0.5% within a 24-hour period).

    • Calculate the volatility index (standard deviation of daily closing prices) and set a threshold to measure the reliability and confidence in the peg of said asset (e.g., volatility index < 0.2%).

  • Historical Performance:

    • Require a minimum operational period (e.g., 2 years) to evaluate stability history through a sizable enough dataset of historical information.

  • Historical peg maintenance record:

    • Percentage of time the stablecoin has remained within the acceptable deviation range.

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