Hi everyone, this is my homework post of week 7 for Professor @yohan2on.

What is TUSD.

TrueUSD (TUSD) is one of stable coins. It is specially designed to be pegged to the USD at 1:1.It means its price equals to 1 United States Dollar. 1 TUSD equals to 1 US Dollar. It is ERC-20 token and it runs on Ethereum Blockchain. It was introduced in 2018 and was launched to a limited investor base. TrueUsd has grown to incorporate 400 million USD.

TrustToken administers TrueUSD. TrustToken is a tokenizing platform for real world assets. TrueToken has very experienced team behind it. It consists of experienced people from Stanford, UC Berkeley, PwC, Google and Palantir. It is the main aim of TUSD to enable users to increased liquidity and provide traders and common users with a non-volatile or less -volatile cryptocurrency assets as compared to high volatile crypto assets like Bitcoin or Ethereum.

Stability and utility make TrueUSD unique. TrueUSD focuses to balance them with security in the shape of regular attestations. TrustToken aimed to emphasize the importance of USD's independent verification. TrueUSD attracts not only big investors but also small traders due to risk reduction. The company claims TrueUSD as the first regulated stablecoin which is fully backed up by Us Dollar. TrustToken got various partnerships due to this. It is fundamental part of these business activities enabling some options for stablecoin TUSD holders to somehow increase their annual passive income returns.

TrustToken aims to deliver maximum possible transparency by methods like real-time auditing, backing and reliability of TUSD. On the other hand, it is also pegged to US dollar.
Rest are the common security issues that may effect any ERC-20 issued token.

Features of TUSD.

It can be used as a mean of exchange in following sectors.

• Financial Sector:- It can be used for financing trade with USD's value without using real US dollar.

• Exchange:- A stablecoin is always good mean for exchange because users do not need to pull out their money from a fiat bank account to avoid volatility.

• Commerce:- Salaries, loans and purchases can definitely use TUSD due to value stability. Its use is better than high volatile crypto assets.

• TUSD is available in almost every crypto exchange. The top exchanges for TUSD are,

Coinsbit
Binance
DigiFinex
IndoEx
Hotbit

How it works.

One can use TrueToken website or app to buy or redeem TUSD for fiat US Dollar. TrueToken claims that single TUSD is backed by single US Dollar.

Tokenization of TUSD.

The process of purchasing or minting new tokens is called tokenization. It is completed in 3 steps when any user passing KYC/AML requirements, can purchase/mint new tokens. Automatic smart contracts carry out this process of Tokenization.

First step in Tokenization is that a user will send US Dollars to escrowed accounts of TUSD trust partner’s alongwith Ethereum wallet address of the user.
When an amount of US Dollar is received in escrowed account who then verifies it, API interacts with Smart Contracts who then issues new TUSD tokens equals to the amount of US Dollars received.
In the last step, new TUSD tokens are issued to the user against the collateral in US Dollar that is kept in escrowed account until TUSD’s are redeemed.

Redemption of TUSD.

Redemption process is opposite to the tokenization process. When redemption of TUSD tokens is carried out, automatic smart contracts burn these redeemed tokens in order to gain stability in price of TUSD. This redemption process is completed in 3 steps.

In this process, the user sends a request for redemption of tokens to smart contracts. TUSD tokens are sent back and smart contracts burn these tokens.
On the receiving of TUSD tokens in smart contracts address, the relevant trust company is notified.
The fiat US Dollars will be sent back to the users bank account after fee deduction by the Trust company. In this way, redemption process is completed.

Conclusion.

Stable Coins are very important in high volatile market of cryptocurrency. Stable coins offer a lot of services to the traders as well as organizations for payments in stable coins. Although TUSD is not as biggest stable coin as Tether, but still it has its importance and market. It is gaining its ground and future of TUSD will be bright.

@steemcurator01
@steemcurator02
@yohan2on

Thanks.