# kaal:claim:3396522-014

**Claim.** Trading a token directly against a well established stable cryptocurrency removes several layers of conversion fees and eliminates the risk that the bridge currency depreciates during the sequence of trades.

**Type.** mechanism  **Support.** argued

**Holds when.**

- requires the stable cryptocurrency to be traded in pairs with the token in question

**Source quote.**

> The use of stable cryptocurrencies, if traded in pairs with the cryptocurrency in question, allows investors to remove several levels of conversion fees and removes the risk of depreciation of the bridge currency during the trades.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies* (2019), IV. Stable Cryptocurrencies, 2. Cost Reduction, page 28

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522

**Verify.** sha256 of source PDF `ef5031b16aa53476ed618f0bdf92601cd4affb893692c701134bd9cba3ea8acf` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies.pdf

**Topics.** contingent-capital, tokenomics, defi

**Keywords.** conversion-fees, trading-cost, stablecoins, bridge-currency, exchanges

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.