TrueUSD (TUSD) is the first USD-pegged stablecoin with live on-chain attestations by independent third-party institutions.
In recent years, TrueUSD (TUSD) has carved out a greater niche in the stablecoin market, increasing its market share and total market capitalization quickly. TrueUSD’s significant growth trajectory emphasizes its expanding position in the market. Especially, TUSD is a well-established and widely recognized stablecoin in the DeFi world.The liquidity of TUSD on Ethereum amounts to 389,997,401 with 51,634 holders at the moment.
In an effort to enhance the transparency and trustworthiness of stablecoins, TrueUSD has taken a significant step forward by integrating Chainlink’s Proof of Reserve (PoR). This move positions TUSD as the first USD-backed stablecoin to incorporate a real-time and programmatically controlled minting system and ensures uninterrupted, on-chain verification of off-chain USD reserves.
Furthermore, TUSD has collaborated with leading accounting firm Moore Hong Kong to provide daily attestation services and reports for its reserves. MooreHK is part of Moore Global, a renowned accounting and consulting firm with over 100 years of experience.
TUSD’s enhanced transparent reserves reporting is accessible across 11 blockchain networks, including major ones like Ethereum and BNB Smart Chain and on over 70 cryptocurrency exchanges. Interested users and institutions can check TUSD’s ChainLink PoR Oracle and audit report.
Motivations
It has been a long time since TUSD was added to Venus and it performed well as a collateral. Thus TUSD’s large user base would very much like to be able to use the Venus lending and borrow assets on ETH. Furthermore, supporting TUSD as collateral would also enhance Venus Protocol’s overall liquidity and trading volume.
Conclusion
Adding support for TUSD as collateral on Venus on ETH Mainnet would provide users with access to a wider range of investment opportunities, to the most liquidity world on Ethereum, and enhance the trading volume on the platform.
Chaos Labs is providing risk parameter recommendations for adding TUSD to the Venus Core Pool on Ethereum, should the Venus community decide on its addition. Following is our analysis and risk parameter recommendations for the initial listing.
Liquidity and Market Cap
Over the last 180 days, DAI has an average market cap of $2.4B, though its current market cap is just $500M. It has a daily average trading volume of $524M over this timeframe.
The asset was previously listed on the BNB Chain Core Pool before being deprecated because of peg instability; the market was recently reopened. We will continue to monitor the TUSD’s peg to minimize risk to the protocol.
TUSD provides Proof of Reserves via a Chainlink feed using data from MooreHK, an accounting firm in Hong Kong.
Collateral Factor
We recommend setting the Collateral Factor to 75%, at parity with TUSD’s parameters on the BNB market.
Supply Cap and Borrow Cap
Applying Chaos Labs’ approach to setting initial supply caps for new assets, we propose setting the supply cap at 2X the on-chain liquidity available under the Liquidation Incentive (configured to 10%) price impact.
