PIP 6 SDR++ Special Drawing Right PIE
Created: 07. April 2020.
This is a proposal to crate stable currency which was issued by IMF in 1969. in response to Bretton Woods fixed exchange rate system. SDR represents basket of fiat currencies that are used on global scale and meet IMF criteria of export criterion (currency issued by IMF member state) and freely usable criterion (widely used to make payments for international transactions and exchange markets). When SDR is established, it is reviewed every 5 years (earlier if warranted by MF). During whole period weight fluctuation among currencies can vary but amount of currency that makes basket is fixed. This gives us perfect example to create SDR-PIE what can ensure fiat stability exposure.
SDR – international reserve asset created and maintained by IMF
- Artificial currency instrument
- Represents basket of 5 currencies: USD, EUR, JPY, GBP, CNY
- Reviewed every 5 years (or earlier if warranted by IMF)
- Used as major element of international reserves (acts as global reserve currency)
- No SDRi (interest rate charged when countries borrow SDR form IMF)
- Last review November 2015
- CNY added in October 2016
It is expected that IMF will make rebalance of SDR in November 2020 what gives us perfect time to create SDR++ portfolio in this year and rebalance it in ending months of 2020 if IMF sticks to their rule.
- Ensure all SDR fiat currencies are available in Ethereum ecosystem as synthetic assets or as stablecoins
- Deploy SDR Pie which tracks above mentioned currencies (all stablecoins plus synthetic assets)
- Implement tracking weights of currencies in SDR from IMF dataset
- Using Balancer to rebalance weight of every currency in SDR
- USD = Cash++ pie
- EUR = STASIS Euro and sEUR from synthetics
- GBP = Binance GBP and sGBP from synthetics
- JPY = sJPY from synthetics
- CNY = ?
At current state we have very small amount of different stablecoins that represent currencies from SDR basket. Missing CNY can (and I hope!) will be added in synthetics products some time in future.
Another approach is to create SDR currency using Balancer Protocol (if this is possible) and make that every 1 SDR currency has fixed number of units of currency that makes them equal to 1 SDR.
Both of solutions presented here are to be discussed since we still have no CNY solution on Ethereum network (as far as I know it…)