True USD

TrueUSD (TUSD) was founded in April 2018 by TrustToken, a company created by a team from Stanford, Palantir, Google, and UC Berkeley. The formation of TrustToken was backed by Stanford StartX, Blocktower Capital, and Founders Fund Angel. TrueUSD was launched as a response to the issues with the legitimacy and backing of Tether, another popular stablecoin.

TrueUSD was initially restricted to a minimum purchase of $10,000, which was later reduced to $1,000 to ensure stability from the beginning. The stablecoin was initially launched on the Ethereum blockchain and later expanded to the TRON Network to increase its acceptance in decentralized finance.

TrueUSD is a fiat-collateralized stablecoin, meaning its value is pegged to the US dollar and backed by an equal amount of US dollars held in escrow by multiple third-party trust companies. The escrow accounts are regularly audited by an independent third-party accountant, and the reports are publicly published to ensure transparency and trust.

TrueUSD (TUSD) is a stablecoin pegged to the value of the US dollar. It is designed to maintain a stable price by being backed by an equivalent amount of US dollars held in reserve. Here's how it works:

To mint new TUSD, users need to create an account on the TrueUSD platform and submit the required Know Your Customer (KYC) information. Once verified, they initiate a wire transfer of USD to the TrueUSD bank account, which is held in escrow by a trusted third-party service. After the wire transfer is confirmed, an equivalent amount of TUSD is minted on a 1:1 basis and sent to the user's cryptocurrency wallet tied to the platform.

To redeem TUSD for fiat currency, users log into their account on the TrueUSD platform and choose the option to redeem their TUSD. They are provided with a unique redemption wallet address, to which they transfer their TUSD tokens. TrueUSD verifies the tokens and wires the equivalent amount of USD, minus any applicable fees, to the user's bank account.

TrueUSD has integrated Chainlink's Proof of Reserve (PoR) to enhance transparency and trustworthiness. This allows for real-time, on-chain verification of off-chain USD reserves, ensuring that the minting process is programmatically controlled and uninterrupted.

TUSD is compatible with multiple blockchain networks, including Ethereum, BNB Chain, Aurora, Optimism, and TRON. This cross-chain compatibility enables users to seamlessly transfer and use TUSD across different platforms, increasing its utility and accessibility.

TrueUSD does not impose fees for purchasing or redeeming transactions. Instead, the company earns income by accruing interest on the US dollars held in its accounts.

TrueUSD is a regulated stablecoin with highly transparent reserves. It is fully backed by cash reserves, ensuring that every TUSD token is backed by a single US dollar.

TrueUSD (TUSD) has several strengths that contribute to its reliability and popularity in the stablecoin market:

1. Regulation and Transparency: TUSD is fully regulated and licensed to operate in the U.S. It undergoes regular monthly audits by accounting firms like Cohen & Company and Armanino LLP, ensuring that it remains fully backed by U.S. dollars on a 1:1 basis. This transparency helps maintain trust in the stablecoin.

2. Fiat Collateralization: Each TUSD token is backed by an equivalent amount of U.S. dollars held in escrow accounts, which are FDIC-insured and regularly audited. This ensures that the token's value remains stable and pegged to the U.S. dollar.

3. Smart Contract Technology: TUSD operates using smart contracts on the Ethereum blockchain, which enables the issuance and redemption of tokens in a secure and automated manner. This technology prevents any single entity from tampering with the figures, ensuring the integrity of the system.

4. Compatibility and Integration: TUSD is an ERC-20 token, making it compatible with various blockchain networks and decentralized applications (DApps). It is also integrated with several DeFi platforms, enhancing its usability and adoption.

5. Real-time On-Chain Verification: TUSD incorporates Chainlink's Proof of Reserves (PoR) technology, which provides real-time and programmatically controlled on-chain verification of its off-chain USD reserves. This enhances transparency and trust in the stablecoin.

6. Low Fees: Unlike some other stablecoins, TUSD does not impose fees for purchasing or redeeming transactions. The firm earns its income by accruing interest on the U.S. dollars held in its accounts.

7. Wide Adoption: TUSD has carved out a significant niche in the stablecoin market, with a large circulating supply and consistent trading volume. It is ranked 5th in the stablecoin sector and has a significant presence on platforms like Binance.

These strengths have contributed to TUSD's reputation as a reliable and trustworthy stablecoin, making it an attractive option for users seeking a stable store of value and a means of exchange.

TrueUSD (TUSD) carries several risks, primarily related to its lack of transparency and potential counterparty risks. Some of the key risks include:

• Counterparty Risk: TUSD is issued by Techteryx, a company with limited public information, which raises concerns about the ultimate beneficial ownership and potential risks associated with the issuer. Additionally, the lack of transparency in the management and ownership structure of Techteryx contributes to this risk.

• Insufficient Backing: There is a risk that the reserves backing TUSD may not be sufficient to cover the outstanding supply, which could lead to a loss of collateral and depegging of the stablecoin.

• Risk of Loss of Collateral: The reserves portfolio, which includes USD cash, cash equivalents, and short-term investments, is not specifically disclosed. This lack of transparency raises concerns about the quality and liquidity of the collateral, which could lead to losses if the investments perform poorly.

• Centralization: TUSD is a centralized stablecoin, which means that the issuer, Techteryx, has significant control over the token. This centralization raises concerns about the potential for the issuer to freeze or confiscate user accounts, compromising user privacy and security.

• Lack of Transparency: TUSD's custodial partners and reserves management are not fully disclosed, which makes it difficult to assess the stability and security of the stablecoin. This lack of transparency can lead to speculation and mistrust among users.

• Dependence on Pegkeeper: TUSD plays a crucial role in the crvUSD Pegkeeper pool, and any depegging of TUSD could have significant implications for the stability of crvUSD. This interdependence increases the risk associated with TUSD.

These risks highlight the importance of careful evaluation and due diligence before investing in or using TrueUSD (TUSD).

• Danny An: CEO of TrustToken and former data scientist at Kernel where he worked on human brain model development.
• Rafael Cosman: CTO of TrustToken and former machine learning expert at Google and Kernel as well as founder of StreetCode Academy.
• Stephen Kade: COO of TrustToken, and former commercialization project manager at Kernel as well as a technical advisor for Bankorus.