TrueUSD (TUSD)
TUSD is based on the widely used ERC-20 token standard, making it compatible with various
blockchain networks and
decentralized applications (DApps). Like other stablecoins, TUSD aims to allow users to enter and exit cryptocurrency markets without the delays associated with traditional bank settlements. Investors can trade TUSD directly for other cryptocurrencies. It also bridges the gap between crypto and fiat currencies without the inherent volatility of
cryptocurrencies.
TrueUSD operates using
smart contracts on the Ethereum blockchain, enabling the issuance and redemption of a tokenized version of the U.S. dollar.
When a user acquires TUSD, the underlying smart contract automatically generates and issues an equivalent amount of TUSD, which is then added to the circulating supply of the token.
On the other hand, when a user sells their TUSD for USD, a smart contract instantly eliminates the tokens by burning them, permanently removing them from the circulating supply of TUSD. Simultaneously, the platform credits the user with U.S. dollars equal to the amount of TUSD redeemed.
One of the advantages of using TUSD is that it doesn't impose fees for purchasing or redeeming transactions. The company earns its income by accruing interest on the U.S. dollars held in its accounts.
In February 2023, TUSD became the first USD-pegged stablecoin to implement automated minting control using
Chainlink’s Proof of Reserve (PoR). PoR enables the automated validation of USD reserves to confirm adequate collateralization. By integrating
PoR, TUSD aims to enhance its stablecoin minting process with added transparency, risk management, and security layers.
TUSD is compatible with numerous blockchain networks, including Ethereum, BNB Chain, Aurora, Optimism, and TRON. This cross-chain compatibility allows users to seamlessly transfer and use TUSD across different platforms, enhancing its utility and accessibility.