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African Currency Basket Unit (ACBU)

Executive Summary

ACBU is a stablecoin backed by a basket of African currencies, designed to address currency stability, cross-border payments, and financial inclusion across the continent. Unlike USD-pegged stablecoins, ACBU's value is tied to a weighted basket of 10 African currencies, providing a "continental currency" for intra-African trade and remittances.

Key Innovation: ACBU is analogous to the IMF's SDR (Special Drawing Rights) but focused on Africa, debunking the myth that stablecoins must be pegged to the US dollar.

Core Concept

1 Stablecoin = 1 ACBU (African Currency Basket Unit)

The ACBU value floats against USD, EUR, and other currencies but remains stable relative to the weighted African currency basket. This provides:

  • Reduced single-currency risk for African businesses
  • Lower conversion costs (0.6% vs 5-20% traditional)
  • Natural hedge for pan-African operations
  • Protection from isolated country crises

Documentation Structure

This document serves as the entry point to ACBU documentation, organized into the following sections:

Business Documentation

Technical Documentation

Operations Documentation

User Experience Documentation

Development Documentation

Additional Documentation

See the DOCS/ directory for:

  • API Specifications
  • Architecture Diagrams
  • Database Schema
  • Smart Contract Specifications
  • Implementation Plans
  • Technical Roadmaps

See the PROJECT/ directory for:

  • Task Breakdown
  • Milestones
  • Resource Planning

Quick Facts

Currency Basket

MVP Phase (Stage 1):

  • 3 currencies: NGN (40%), KES (35%), RWF (25%)

Full Implementation (Stage 3):

  • 10 currencies representing diverse African economies
  • Weighted by GDP, trade volume, and liquidity
  • Total allocation: 100%
  • See MVP Phase Documentation for transition details

Reserve Structure

  • 105% overcollateralization (100% backing + 3% operational + 2% emergency)

Fee Structure (Community-First Model)

  • Deposits: 0.3% (USDC or local currency)
  • Withdrawals: 0.3% (single currency or basket)
  • P2P Transfers: FREE (or 0.01% blockchain fee)
  • Merchant Payments: 0.2% (vs 2-3% cards)

Note: This is the standardized fee model for MVP and initial launch. See Business Model for details.

Cost Comparison

  • Traditional remittances: 5-8% fees
  • ACBU model: 0.6% total (0.3% in + 0.3% out)
  • Savings: 88-93% cheaper

Development Phases

Stage 0: Technical Foundation (Months 1-2)

  • Smart contract prototyping on Stellar testnet
  • Oracle prototype
  • Reserve tracking POC

Stage 1: MVP Build (Months 3-6)

  • Production smart contracts (3 currencies: NGN, KES, RWF)
  • Oracle system (5 validators)
  • Backend infrastructure
  • Web application
  • Security audit

Stage 2: Launch (Months 7-9)

  • Mainnet deployment
  • Beta user testing
  • Public launch
  • Operations optimization

Stage 3: Expansion (Months 10-18)

  • Expand to 7 currencies (Months 10-12)
  • Expand to 10 currencies (Months 13-15)
  • Pi Network bridge (Months 16-18)
  • Quarterly rebalancing automation
  • Merchant payment SDK

Stage 4: Ecosystem (Months 19-24)

  • ACBU savings/staking
  • ACBU lending protocol
  • MTN/Orange Money integration
  • Mobile apps (iOS/Android)
  • Infrastructure scaling

Key Differentiators

  1. Currency Sovereignty - Value tied to African economic performance, not US monetary policy
  2. Diversification - Basket approach reduces volatility vs single currencies
  3. Cost Efficiency - 88-93% cheaper than traditional remittances
  4. Speed - 3-5 second settlement vs days for traditional methods
  5. Transparency - Public reserve dashboard, regular audits, on-chain attestations

Target Markets

Primary Users

  • Pan-African e-commerce merchants
  • Cross-border traders ($192B annually)
  • SMEs doing regional business
  • Diaspora remittances ($100B+ annually)

Geographic Focus

  • MVP (Stage 1): Rwanda, Kenya, Nigeria (3 currencies)
    • NGN: 40%, KES: 35%, RWF: 25%
  • Expansion (Stage 3A): Add South Africa, Ghana, Egypt, Morocco (7 currencies)
    • Weights adjusted: NGN: 18%, KES: 12%, RWF: 8%, plus new currencies
  • Full (Stage 3B): Add Tanzania, Uganda, Côte d'Ivoire (10 currencies)

Success Metrics

Stage 1 (MVP)

  • 5,000+ registered users
  • $1M+ total reserves
  • 10,000+ transactions processed
  • <1% technical failure rate
  • Reserves maintained at 103-105%

Stage 4 (Ecosystem)

  • 100,000+ merchants accepting ACBU
  • $50M+ in reserves
  • Millions of transactions
  • Mobile money partnerships live
  • Full 10-currency basket operational

Risk Disclosure

ACBU is NOT pegged to USD or any single currency

✓ ACBU maintains stable value relative to a basket of 10 African currencies

✓ Its USD/EUR value will fluctuate based on African currency performance

✓ Best for: African cross-border transactions, regional trade, diversified savings

✗ Not ideal for: Holding purely USD-denominated value

Getting Started

  1. For Developers: See STAGES.MD for technical roadmap
  2. For Business: See Business Model for commercial details
  3. For Partners: See Fintech Partnerships for partnership opportunities
  4. For Users: See User Flows for how to use ACBU

Last Updated: January 26, 2026
Version: 2.0
Status: Planning & Development

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