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What is SigmaUSD and how does it work?
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DeFi
Updated 11/26/2025

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.

  • Algorithmic: no centralized issuer or bank backing
  • ERG-collateralized: 400-800% reserve ratio
  • SigRSV: reserve token absorbs ERG volatility
  • AgeUSD protocol: proven stablecoin mechanism
  • Decentralized: smart contract controlled

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