Location: Filda Telegram
Date and time: Aug. 9th, 8PM HKT
Introduction of TUSD
First let me give you an introduction on TUSD. TrueUSD (TUSD) is the first independently-verified digital asset redeemable 1-for-1 in US Dollars. The multichain stablecoin uses various banks, escrow accounts, and third-party attestations to reduce counterparty risk, provide transparency, and prevent fraud.
Each TUSD token is fully collateralized and attested live on-chain, now moving billions in monthly trade volume across over 100 global trading partners. Liquidity is offered on numerous leading exchanges, DeFi protocols, and is supported by major OTC desks worldwide with reach to international customers in over 120 countries. TUSD also supports nearly instant minting and redemption speeds with financial partners including Signet by Signature Bank, the Silvergate Exchange Network (SEN) and PrimeX by PrimeTrust.
1. What do you expect from cooperation with Filda?
When TUSD went live on HECO, the first thing we did was to search for a DeFi protocol with high TVL and DAU to cater to users’ demand for diversity. At present, major on-chain use cases of stablecoins are still trading and lending: for trading, we have opted for MDX, which is a leading AMM protocol on HECO, while for lending, FilDA is a good choice. As one of the five protocols that won HECO’s developer support grants, FilDA boasts a strong technical capacity, a large community base and a good market reputation. Its assistance will help speed up the launch of TUSD on the HECO chain. Moreover, Filda’s vision of realizing multi-chain staking and lending also coincides with that of TUSD. Against the backdrop of public chains’ remarkable growth these years, Ethereum no longer dominates the industry, and therefore it is natural that projects have to take multi-chain application scenarios into consideration. Multi-chain deployment of TUSD has now been completed on HECO, BSC, TRON, Avalanche, and other protocols, so I believe there will be much potential in the partnership between TUSD and Filda.
2. TUSD recently got integrated into Huobi ECO Chain. Can you tell us the importance of this integration and how it help both project to scale?
TUSD was first launched on Ethereum. After the massive boom in Ethereum’s DeFi ecosystem in 2020, its high gas fees and limited block capacity resulted in significantly unfriendly user experience, which naturally caused an overflow of funds. We Operations were also aware of the potential of the multi-chain environment, and that Huobi ECO is an excellent solution: from the technical perspective, HECO boasts extremely low gas fees and faster transfers. In addition to a properly functioning infrastructure, public chains with two-sided markets alike also have to focus on developers and user resources. In this regard, HECO has attracted talented developers and thus more innovative applications through developer support programs. This expands possibilities for our integration. Further, HECO has gathered a large number of users from the vast community and assets of the Huobi ecosystem, which also explains TUSD’s decision to move onto HECO.
For HECO and any other public chains, stablecoin is an indispensable part of their ecosystem. When evaluating a stablecoin, we also need to take the macroeconomy into account in addition to such basic metrics as market cap, trading volume, transaction count, etc. Nowadays, every country is talking about CBDC and seeking to impose tighter policy control over digital currencies, especially stablecoins that bear similar traits to CBDC. Therefore, the introduction of compliant stablecoins is the top priority for building public chains. As of August 9, 2021, TUSD has a market cap of $1.25 billion, ranking the fourth in its kind. It is a registered MSB and audited in real time by a large accounting firm. We believe that the introduction of compliant
3. There’s a lot of stablecoins in the market now. Why should TUSD be our preferred stablecoin? How does it improve user experience?
Q: Why should TUSD be our preferred stablecoin?
- 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.
- 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.
Q: How does it improve user experience?
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.
Q: Can we use it as a hedge against the inflation?
As central banks around the world inject more liquidity into the economy, inflation becomes inevitable, and savings interest rates are likely to plunge to zero or even lower. According to the CME FedWatch, the probability of the Federal Reserve raising the interest rate in September, November, and December this year is 0%, and that of it maintaining the interest rate between 0%-0.25% in September is 100%. Against this backdrop, all global assets are looking for hedging solutions. As a fiat-currency-pegged stablecoin, TUSD has USD as its collateral. Holders can swap between TUSD and USD at a ratio of 1:1. But we have also realized that TUSD holders have the need to hedge against inflation. Below are several channels where holders can put their money for a hedge against inflation:
a. Savings and yield-generating platforms
TUSD has been listed on decentralized lending platforms including Compound, Aave, and Filda. In addition to interest, more innovative lending platforms like Filda also provide extra mining rewards for users who supply and borrow TUSD.
In addition, TUSD has been supported on major centralized lending platforms such as Celsius, Crypto.com, Dharma, and, most importantly, NEXO. As one of the world’s largest and most trusted decentralized cryptocurrency collateral-based lending platforms, NEXO offers TUSD depositors a stable savings APY of around 12%. Perhaps a 12% yield is not attractive enough to users who have experienced the DeFi mining boom, but NEXO is still a magnet for traditional investors who struggle with low or even negative interest rates. Besides, compared to traditional financial institutions, NEXO does not charge any fees no matter for withdrawals, transactions, token swaps, or circulating fund management, nor does it charge any commission or incur any hidden fees.
b. Investment platform
We are also building investment applications, one of the most common use cases of funds in the traditional world, in addition to the financial platforms mentioned above in order to meet our customers’ demand. For example, Invictus Capital, an innovative asset investment platform that accepts payments in TUSD, has rolled out a series of crypto-based products such as C10 and C20 cryptocurrency index funds, and it also offers investment options in innovative products including venture capital, gold, lending products in US dollars, and renewable energy, with no requirement on the minimum investment.