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HomeCOINSWhat Is Sierra (SRA)? Complete Guide Review About Sierra.

What Is Sierra (SRA)? Complete Guide Review About Sierra.

What Is Sierra (SRA)?

Sierra is a decentralized reserve currency protocol available on the Avalanche Network based on the SRA token. Each SRA token is backed by a basket of assets (e.g., MIM, SRA-AVAX LP Tokens etc) in the treasury, giving it an intrinsic value that it cannot fall below. Sierra also introduces economic and game-theoretic dynamics into the market through staking and minting.

Sierra Storage Key Points

Coin BasicInformation
Coin NameSierra
Short NameSRA
Circulating Supply150,000.00 SRA
Total Supply150,000
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

What is the point of Sierra?

Sierra goal is to build a policy-controlled currency system, native on the AVAX network, in which the behavior of the SRA token. In the long term, they believe this system can be used to optimize for stability and consistency so that SRA can function as a global unit-of-account and medium-of-exchange currency. In the short term, they intend to optimize the system for growth and wealth creation.

They intend to achieve price flatness for a representative basket of goods without the use of fiat currency, in order to allow the cryptocurrency industry to detach once and for all from the traditional finance world. Sierra also aims to produce & develop financial frameworks for the betterment of your future. They believe, with the strength of the community, they can do so.

How do I participate in Sierra?

There are two main strategies for market participants staking and minting. Stakers stake their Sierra tokens in return for more SRA tokens, while minters provide LP tokens or MIM tokens in exchange for discounted SRA tokens after a fixed vesting period.

How can I benefit from Sierra?

The main benefit for stakers comes from supply growth. The protocol mints new SRA tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.

The main benefit for minters comes from price consistency. Minters commit capital upfront and are promised a fixed return at a set point in time; that return is given in SRA tokens and thus the minter’s profit would depend on SRA price when the minted SRA matures. Taking this into consideration, minters benefit from a rising or static price for the SRA token.

Who created Sierra?

The Creators of Sierra are to remain anonymous until after launch. They believe that sticking to a true community owned organization is most important and warrants your decision to remain this way until post launch. Currently most of the decisions are taken by the core team, but they expect to be able to turn this into a DAO-governed model as soon as possible.

Why do you need Sierra in the first place?

Dollar-pegged stable coins have become an essential part of crypto due to their lack of volatility as compared to tokens such as Bitcoin and Ether. Users are comfortable with transacting using stable coins knowing that they hold the same amount of purchasing power today vs. tomorrow. But this is a fallacy. The dollar is controlled by the US government and the Federal Reserve.

This means a depreciation of dollar also means a depreciation of these stable coins. Sierra aims to solve this by creating a non-pegged stablecoin called SRA. By focusing on supply growth rather than price appreciation, they hopes that SRA can function as a currency that is able to hold its purchasing power regardless of market volatility.

Nile
Nile
Nile Is Very Old Author At Wootfi Blog . We Loves To Write About Altcoin , ICO & Defi . In Free Time He Loves To Play Football .