Friendowment's first and most important mission is to help people build and maintain more stable financial futures for themselves and their loved ones. While we will certainly build products that leverage the capabilities of our shared asset platform in ways that are orthogonal to that primary goal, they will always support that mission in one way or another.
The volatility currently endemic to cryptocurrency markets may serve to bolster or detract from your financial goals. If you create an Endowment based in Ether (ETH) that you and your team contribute to over time, that volatility may serve to substantially increase your wealth (if the trend in ETH value is upwards) or hinder it (if ETH loses value against the dollar).
In recognition of the differing risk appetites of our customers, we've introduced a new type of asset that you can use to minimize your exposure to that volatility.
We've deployed updates in the last week to permit you to create Endowments denominated in a new ERC20-based token called Friendowment USD (USDF). We've designed backend business processes to convert ETH to US Dollars (USD) in amounts consistent with the exchange value at the time of transfer when you contribute ETH to USDF-backed endowments. And when you're ready to withdraw from a USDF-backed Endowment, we reverse the process. In that way, your contributions and the value of your USDF-backed Endowments will always track with the US Dollar and your exposure to the volatility risk associated with the cryptocurrency markets is virtually eliminated.
Although based on the ERC20 standard, this new token is tied to the Friendowment service and cannot be traded outside of our platform.
The process for contributing ETH to a USDF-backed Endowment involves multiple Ethereum blockchain transactions (e.g., ETH in to Friendowment, USDF out to your contract, and a transfer of funds at our Ethereum exchange to re-balance ETH and USD accounts). We will continue to improve the interface that reflects the detail for these transactions so that you can keep track of each step directly.
While we're building those improvements, feel free to each out to us if you have any questions or concerns in the meantime.
Thank you for building a more generous and financially-stable world with us! <3