TrueUSD Partners with Polygon Ecosystem to Kick-Start Balancer’s Liquidity Incentive Program

5 min readNov 19, 2021

Automatic market makers (AMMs) are closely related to stablecoins: users manage their assets via automatic market making protocols and trade digital assets through stablecoins. This combination serves as a great boost to the DeFi ecosystem on manifold fronts.

On November 15, TrueUSD announced the launch of the TUSD liquidity incentive program in the Balancer protocol in Polygon’s ecosystem. As a non-custodial general-purpose AMM protocol, Balancer allows users to receive rewards by providing TUSD-DAI-USDC-USDT liquidity. Each week, users are able to claim a share of 2,500 BAL, 27,500 MATIC, and 55,000 TUSD in proportion to the liquidity they provide.

Liquidity pool

Rules for liquidity pool rewards

This incentive program is of material significance to the Polygon ecosystem, Balancer, and TrueUSD. The Polygon network has been growing on a roll, with its TVL rocketing from around $50 million in Q2 2020 to $5 billion today. The dramatic rise of its TVL comes down to both a high-performing network and the launch of the DeFiforAll Fund, a move that has drawn a swarm of quality protocols to integrate with and migrate to Polygon, with Balancer, an established DeFi project, included. The first week of November 2021 witnessed one of the strongest performances of Balancer, whose TVL on Mainnet V2 spiraled from $1.7 billion in the previous week to $1.83 billion, hitting an all-time high. The launch of the incentive pools of TrueUSD, a stablecoin project worth over $1.2 billion in market cap, will surely bring more traffic to Polygon and Balancer while offering users in the ecosystem more stablecoin options. In addition to this, Balancer pools allow their creators to choose the trading fee they want, which has endowed TrueUSD users with more market-oriented options. Higher handling fees set up by liquidity providers with large funds or fund pools providing special assets can inject more liquidity into the market.

APR and asset shares in the pool

As of 16 November, the TVL of TUSD-related liquidity pools had exceeded $19 million, of which USDT accounted for about 24%, DAI for about 33%, TUSD for about 13%, and USDC for about 29%. The APR of the liquidity pools stood at 44.64%. In the meantime, as the trading volume of the liquidity pools increases, the trading fee rewards received by liquidity providers are also on a constant rise, from 0.52% on October 21 to 2.95% on November 16.

The year 2021 was a significant one for TrueUSD as its market cap started to gain incredible traction in this year. The circulating supply of TrueUSD has been tripling since April, up from $321 million on April 26 to $917 million on May 5, and then all the way up to $1.53 billion on July 15, hitting a record high.

TUSD circulating supply

As of now, the monthly trading volume of TrueUSD on upwards of 100 exchanges including Binance, Huobi, OKEx, and Poloniex has reached billions of US dollars, with users coming from more than 120 countries. In addition to centralized exchanges, TrueUSD has also made significant achievements in DeFi. It has been deployed on a number of public chains including Ethereum, TRON, Avalanche, BSC, and HECO, contributing to the growth of ecosystems by injecting abundant initial liquidity into DeFi projects. This partnership with Polygon is not only a critical milestone for TrueUSD, but, more importantly, marks its another attempt to explore further in the DeFi world.

Moreover, TrueUSD has been building up its presence in the DeFi protocols of a variety of ecosystems. According to the latest statistics, the TVL of TrueUSD in Compound has reached $87.7 million, and that in the AAVE protocol is approximately $166 million. In addition to lending protocols, decentralized trading platforms also sit at the core of TrueUSD’s development roadmap. As of date, the TVL of TrueUSD in Curve has exceeded $53.7 million and that in PancakeSwap has reached $68.5 million, bringing substantial stable liquidity to these protocols.

It is also worth noting that TrueUSD announced the launch of its Fountain Incentive Plan at the end of this October. The scheme will be used for incubation of projects with potential by introducing TrueUSD and other digital assets worth $1 billion to DeFi ecosystems. This productive partnership of TrueUSD, Polygon, and Balancer paves the way for more to come in the future, and it is believed that TrueUSD can fit into the Polygon ecosystem and grow into a significant player.

About TrueUSD

TrueUSD is the first digital asset with live on-chain attestations by independent third-party institutions and is backed 1:1 with the U.S. dollar. So far, it has been listed on more than 100 trading platforms such as Binance, Huobi, Poloniex, and is live on well-known public chains such as TRON, Avalanche, BSC, and HECO, providing them with a great deal of liquidity to catalyze their growth. It is audited real-time by Armanino, one of the largest US-based accounting firms, to ensure the 1:1 ratio of USD reserves to circulating token supply and the 100% collateral rate. Users can access the publicly available audit results via the official website at any time.

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TUSD is the world’s most trusted stablecoin, fully backed by USD and independently attested live and on-chain, now moving billions of dollars around the world.