Sögur is NOT a stablecoin, however it is backed by a reserve with a dynamic reserve ratio and corresponding reserve balance.
The smart contract running the monetary model is designed to mitigate volatility by offering buy and sell prices which are constantly updated based on the number of SGR in circulation, preventing sharp changes to SGR price.. It does so by limiting its price fluctuations to a predictable degree for a given amount of SGR sold relative to circulating supply. It also assures that SGR is always redeemable while its price cannot fall below 1 SDR.