The primary function of Abaku Capital is the maintenance and promotion of a family of tokens aimed at facilitating commerce
The flagship token is designed for monetary stability, and as a hedge against foreign-exchange risk, whereas the rest of the family comprises tethers to various currencies of interest
Abaku SDR
This token is, in essence, a cryptonisation of the International Monetary Fund’s proprietary currency, the SDR (special drawing rights), which is used exclusively by the world’s central banks. The SDR, and therefore its Abaku counterpart, is an asset-backed currency based on a basket of national currencies managed by the IMF. For an authoritative description of basket composition, the reader may refer directly to that institution’s website:
IMF: Special Drawing Rights (SDR)
For the purposes of our customers, this structure proffers currency stability and independence from the divergences present in currency crosses whence foreign exchange risk emanates. Additionally, it significantly reduces the costs of cross-border payments, in terms of the fees collected by the banking system, the burden of regulatory compliance, as well as its speed of execution
For a more in-depth analysis of the various use-cases for this token, please refer to our whitepaper:
To address the issue of F/X risk, consider that a Japanese manufacturer who receives payment from an American firm in the Abaku token and uses it to purchase raw materials from an Australian vendor, has just become immune to fluctuations in the currencies presently in use. How? Because negotiations with the vendor lock-in the manufacturer’s cost structure, in the very unit of measure he is paid in
In essence, this is very similar to the reduction of cross-border payment costs experienced in the European Union, which, by virtue of having eliminated Deutsche Marks, French Francs and other national currencies, created a single unit of measure for trade, thus eliminating F/X risk
As a conclusion, therefore, it is Abaku Capital’s raison d’être to provide participants in the massive global trade industry with a unified, blockchain-based currency that does away with the risk of fluctuations in the home currency
Abaku tethers
In addition to tokenising the currencies in the SDR basket individually, Abaku will create tethers to other currencies of interest. This facilitates customer consumption and liquidation of the SDR, easing and at times eliminating the frictions of banked solutions, since customers can convert their home currencies to token versions before committing to use of the SDR
Additionally, Abaku will create tethers to commonly used cryptocurrencies such as Bitcoin and Ethereum, to facilitate their exchange for sovereign currency
about the technology
The choice of blockchain for this project — owing to both its performance characteristics as well as it zero-fee structure — is EOS, a project with a vibrant community and a significant amount of financial support (their ICO raised $4.2B)
Our company has developed its products as a mint-and-burn tokens where minting occurs as a function of deposits of sovereign currencies into custodial accounts (managed by the Royal Bank of Scotland) and burning equates to wires to the customer account, a process that requires registration of customers’ EOS accounts
In that sense, Abaku Capital serves as an institutional-level bridge for fiat
Additionally, listing on its choice of decentralised exchange will allow for trading these tokens for the full gamut of choices, whilst making the tokens more broadly available
How it works
To mint any of our tokens, a customer follows the procedure below:
Registers as a customer with us — a process that includes KYC clearance and other due diligence. Two levels of KYC are performed, one for individuals, the other for non-natural legal entities
Once approved, customer receives a hardware wallet from us (for institutional clients whose expected daily transaction volume exceeds our minimum requirements) and follows our instructions to set it up. The wallet address generated is then registered with us
Customer wires a desired sum to our custodial account
The wire is received and, in the case of SDR purchases, split into the currencies specified in the basket, after which a net asset value is calculated and the corresponding number of tokens is generated
The tokens are sent directly to the customer’s registered wallet address
To burn tokens — the reverse of minting — the customer:
Sends the desired number of tokens to our DEX address
The smart contract burns the tokens and instructs our staff to issue a wire in the equivalent amount to the bank account registered for the customer
The transference (sending) of our tokens is performed as a regular EOS token operation and can be done by any wallet
To buy any other asset:
Customer sends the desired amount of tethers or SDR to our decentralised exchange
The order is matched against a set of counter-parties. Limit prices can be specified by including a string like the one shown below into the memo field of the transaction:
limit=102.4022Upon execution, the requisite asset is automatically delivered to the sending address
DEX Official Addresses
The official EOS account addresses to be used for transacting in Abaku are as follows:
abaku.burn — sending tokens to this address burns them
abaku.xchg — used for sending to the decentralised exchange