Saga, a company claiming to be the competitor of Facebook’s Libra, has announced listing its SGA token on the Celsius Network, according to the Block Crypto website.
The company added that SGA holders can earn annual interest of 9.9 percent. Moreover, they will be able borrow cash or stablecoin against the SGA at rates of nearly 3.45 percent and use their coins as collateral.
Issued in late 2019, SGA is pegged to a basket of currencies that relocate the International Monetary Fund’s (IMF) special drawing rights (SDR).
For his part, Ido Sadeh Man, founder of Saga, said:
“A usual stablecoin is pegged to one asset, be it a national currency, a crypto asset or another asset type. SGA on the other hand, is reliant on the value of a trusted basket of currencies – replicating the composition of the IMF’s SDR, which has been successfully used for over five decades now by the world’s central banks as a stabilization instrument.”
“The SDR comprises of the USD, the euro, the British pound, the Japanese yen and the Chinese yuan, which makes it significantly less vulnerable to price fluctuations caused by one currency,” he added.
Reason behind choosing Celsius
This is the first time SGA is listed on a lending platform. Since Celsius is an investor in SAGA, the company chose to list its SGA on Celsius’ platform.
Sadeh Man said:
“We feel Celsius and Saga share a mutual vision. […] Additionally, we are proud to have Celsius among some of our early backers, such as Lightspeed, Vertex, and Mangrove.”
Celsius offers 9.9% internet on all stablecoins
Celsius CEO Alex Mashinsky said his company is offering interest of 9.9 percent per annum for all stablecoins listed on the platform.
“We’re able to generate this industry-leading rate of return because 100% of our borrowers are creditworthy institutions that pay a premium for liquidity, and because we share up to 80% of this revenue with our users,” said Mashinsky.
Cryptolydian earlier reported that the Libra Association has formed a committee to follow up on the ongoing project developments.
The Technical Steering Committee (TSC) which includes five members will oversee the technical design of the Libra platform as well as coordination of other developments. The members were selected from 21 companies having wide experience in the blockchain technology.