Location: Channels FinanceTelegram
Date and time: Aug 19th, 10AM GMT
Hi everyone, Alison here from TUSD. I am thrilled to be doing this AMA with you today! A little more information about me, I am the Overseas BD Manager at TrueUSD and I’ve been working with the team for a little while now. It’s been exciting to see TUSD grow in DeFi, and am especially stoked over our partnership with Alpaca!
- What are the unique advantages of TUSD?
One point we are very proud of is our rigorous choice of partnerships. TUSD works with the top players in their fields to ensure we provide the most transparent and convenient user experience to TUSD holders.
- Banks, otcs
TrueUSD works with various different partners, the first ones being banks and OTCs . From the start, TUSD has worked with top accounting firms to verify that the funds pegged are always held at a 1:1 ratio. For all of the real-time audits, TrueUSD works with Armanino, a top 20 accounting firm in the US. You can find our real-time attestation by clicking the link: https://real-time-attest.trustexplorer.io/truecurrencies
TrueUSD (TUSD) is the first independently-verified digital asset redeemable 1-for-1 for US Dollars. TUSD also supports nearly instant minting and redemption speeds with four renowned financial partners.
- First Digital,
- Prime Trust,
- Silvergate Bank,
- Signature Bank.
Most recently, we have a new banking partner in Signature Bank through an integration with its blockchain-based payment platform Signet, which means there is an additional real-time settlement option for TUSD users and holders.
In accordance with the stablecoin Code of Ethics, every token will also have the equivalent fiat value stored in the bank to back it. TUSD uses various banks, escrow accounts, and third-party attestations to reduce counterparty risk, provide transparency, and prevent fraud.
TUSD is also part of a comprehensive ecosystem which includes over 100 global trading partners, 20 top strategic investment institutions and many partner institutions covering lending and security. TUSD holders can buy and sell on platforms such as Binance, Huobi, Bittrex etc. Putting this into numbers, TUSD grew by over $1 billion since May 2021, positioning itself in the leading stablecoins invested in.
- DeFi partners
TUSD is also accessible on over 30 DeFi platforms across multiple blockchains such as AAVE, Compound，Maker, Alpaca, JustLend etc. By participating in pioneering DeFi projects, TUSD holders can lend, mine, trade and borrow on top of benefit from high returns.
- Trust and Security is very important in any business, what makes investors, customers and users safe and secure when working with your project?
At TUSD, we highly value security for our community as well as transparency to give our users the peace of mind they are looking for when using Stablecoins. Let’s have a look at the competitive advantages TUSD has to offer:
- TUSD is compliant with all relevant legislation.
TUSD stays compliant by means of KYC and AML, among others, and will even review users’ individual transactions to reduce risk.
- TUSD continues to improve its transparency with the launch of a real-time audit platform.
We have partnered with Armanino, one of the top 25 largest independent accounting firms in the US, since March 2019. Users can view the real-time data of TUSD at any time on the official website, which are submitted by Armanino independently and verified by a third party. The upgrade from monthly audit reports to minute-by-minute data updates has increased the transparency of TUSD. (Here is the link to our real-time audits: https://real-time-attest.trustexplorer.io/truecurrencies)
- The TrueUSD team has no access to funds in custody, nor will it be involved in the allocation of the funds.
Users who want to purchase TUSD from the official website must first send USD along with the receiving address to the trust company. After receiving the money, the trust company will send an execution command to the smart contract, which will then deposit TUSD directly to the user’s wallet. All funds will be supervised by the trust company.
TUSD team has no access to funds in custody, nor will it be involved in the allocation of the funds, which fully ensures the security of users’ assets. Each TUSD represents a redeemable receipt of $1 in the custodial account, the beneficiary of which is the TUSD holder. Corresponding TUSD will be burned when USD is redeemed to ensure the 1:1 exchange rate between the TUSD in circulation and the USD in custodial accounts.
- Do you agree that community is a key factor for the success of the project? Knowing that the project has had quite successful phases, but with future plans do you have plans to benefit some communities coming soon?
When measuring whether a project has potential or not, we usually take 4 aspects into consideration. Community is one of the key factors, but we also look at the team background, the ability of marketing and operation, and the economic models.
As we’ve mentioned above, the transparency and safety of TUSD have been proved by its everlasting recognition among cryptocurrency communities and users. The fluent minting and redemption user experience, abundant trading pairs on leading exchanges all makes it easy for users to obtain TUSD.
Also, TUSD is one of the leading stablecoins catching the opportunity of the DeFi trend which makes TUSD holders benefit from partnerships and earn from them. Additionally, TUSD is led and advised by a dynamic team from a range of complementary backgrounds including those with extensive experience from reputable financial institutions, renowned IT firms and dynamic blockchain entrepreneurs including Rafael Cosman and Justin Sun acting as advisors.
Of course we want to continue providing a high-standard transparency for TUSD holders, but we also keep working with various partners and are always on the lookout for the best opportunities that will benefit our users. We are looking to build more in-depth partnerships and integrate with wallets, exchanges and other companies. As always, we make a point to update our community every step of the way so make sure to stay informed by following our twitter account : https://twitter.com/tusd_official
- When the market is unpredictable how does TUSD stay stable? How does TUSD ensure a constant liquidity?
Because TUSD is always redeemable 1:1 with USD, it is able to stay stable through natural market mechanisms. We have onboarded many institutional trading firms and whenever they see TUSD trading for <$1, they will buy it because they know they can always exchange it with us for $1. Conversely, if they see TUSD trading >$1, they will buy TUSD from us and then sell it on the exchange to make profit until it returns to $1. TUSD supports nearly instant minting and redemption speeds through the Silvergate Exchange Network (SEN) of Silvergate bank and SigNet of Signature bank.
TUSD is at over $1.29 billion in market cap at the time of writing, ranking as the 5th largest stablecoin after USDT, USDC, BUSD and DAI. TUSD enjoys deep liquidity on both centralized and decentralized exchanges，and is supported by major OTC desks.
5.What are some of the challenges that TrueUSD currently faces? How do you aim to solve them?
Without speaking of challenges, the one target we keep in mind at TUSD is to stay valid and on-trend if you will. DeFi has been all the rage since 2020, more and more crypto-backed stablecoins such as DAI, USDJ and LUSD have emerged, demonstrating another triumph for decentralized spirit. Nevertheless, those have some obvious weaknesses. Due to the high volatility of cryptocurrency, crypto-backed stablecoins are easy to be liquidated（its collaterals) and lose the pegging.
There has also been a loud echo about algorithmic stablecoins recently, however, this market is still at its infancy. Algorithmic stablecoins are absent in financing, basic trading pairs in exchanges or reserve pools like Curve. By contrast, TUSD and other fiat-backed stablecoins have more use cases, reducing the gap between DeFi and CeFi.
By analysing the strengths and weaknesses of our competitors, we do think multi-chain is an awesome solution. TUSD has been deployed on several mainstream blockchains, including Ethereum, TRON, Avalanche, BSC, Heco and Polygon, and is playing an important role on those blockchains’ ecosystems. It is undeniable that fiat-backed stablecoins represented by TUSD are more flexible and have greatly reduced the threshold of crypto players entering and exiting on different blockchains. The legend of Ethereum blockchain may not exist anymore and more and more Ethereum killers show up. Those who steer into the skid win the game.