Smart Contracts
Intermediate
Updated 11/26/2025
What is
SigmaUSD?
Ergo's algorithmic stablecoin backed by ERG reserves, using the AgeUSD protocol for crypto-collateralized stability.
SigmaUSD is an algorithmic stablecoin on Ergo that maintains a soft peg to the US Dollar through over-collateralization with ERG. It uses the AgeUSD protocol where users can mint SigmaUSD by locking ERG, or mint SigmaRSV (reserve tokens) to provide additional collateral. The system maintains stability without centralized reserves or trusted custodians.
Key Points
- Soft-pegged to USD via ERG collateral
- Over-collateralized (typically 400-800%)
- SigmaRSV: reserve token for additional backing
- No centralized reserves or custodians
- Oracle pool provides ERG/USD price
- Fully on-chain and transparent
Use Cases
1
Stable value storage on Ergo
2
Trading pair for DEXs
3
Hedging ERG price volatility
4
Earning yield via SigmaRSV
Technical Details
SigmaUSD uses a reserve ratio model. When ratio > 400%, users can mint SigmaUSD (paying ERG) or redeem (receiving ERG). SigmaRSV holders absorb ERG price volatility in exchange for potential gains. Minting/redeeming is restricted when reserves are too low or too high to maintain stability.
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Frequently Asked Questions
Questions about SigmaUSD
Common questions about this topic
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
How-to
Getting Started
What can I do with Ergo?
Ergo supports a full ecosystem: trade on Spectrum DEX, use SigmaUSD stablecoin, mix transactions with ErgoMixer, collect NFTs on SkyHarbor, mine with GPUs, lend/borrow on DuckPools, bridge to other chains via Rosen, and build dApps with ErgoScript. It's a complete platform for decentralized finance and applications.
Explainer
Getting Started
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started
What is SigmaUSD and how does it work?
SigmaUSD is Ergo's algorithmic stablecoin, pegged to USD and backed by ERG reserves. It uses the AgeUSD protocol: users mint SigUSD by depositing ERG, while SigRSV holders provide reserve backing and absorb volatility. The reserve ratio (400-800%) ensures stability. No centralized issuer, no bank accounts - pure crypto collateral.
Explainer
DeFi