STABLECOINS

This is my first homework at the steemita Crypto cademy. Very curious in myself about my stable point. I saw that sir @yohan2on explained the STABLECOINS very nicely. The week before that we knew what stable coins. And this new week we’ll talk about TrueUSD (TUSD) as new homework.

What is TrueUSD (TUSD)?

TrueUSD was introduced in early 2018. It was designed to be simple, transparent and reliable stablecoin. For this reason, it doesn’t use a hidden bank account or any special algorithm.

TrueUSD’s US dollar holdings are distributed in various bank accounts that belong to different trust companies. The involved parties have signed an agreement to publish the collateralized holdings daily and conduct monthly audits. The token uses multiple escrow accounts to lower counterparty risk and provide holders legal protection against theft.

TrueUSD was made for:

Traders and exchanges. TrueUSD is a great tool to hedge against market volatility and enter markets without buying into BTC/ETH first.
Mainstream commerce. Everyday people and businesses can take advantage of the benefits offered by blockchain technologies without exposure to massive price fluctuations.
Developing economies. The developing markets can use stable currencies for trade.
Long-term financial contracts like loans, salaries or predictions markets.

Financial institutions can use a trustworthy asset to trade in the crypto markets.

#How Does TrueUSD (TUSD) Work?

The key to proper functioning of every TrustToken tokenized asset is the third-party escrow accounts. Everyone passing KYC and AML requirements can purchase/redeem TrueUSD using their application.

TrustToken employs publicly audited smart contracts to restrain themselves from issuing tokens. The money never even touch TrustToken team’s hands. New TUSD is automatically minted when an escrow account receives USD. Whenever a user redeems USD, the equivalent amount of TUSD is burned immediately. That way TrustToken ensures 1:1 USD to TUSD ratio between the money in the escrow accounts and TUSD in circulation.

Whenever a user passes KYC/AML, he or she can send USD directly to one of the TrueUSD’s trust partner (along with Ethereum wallet address). Once the funds are verified by the escrow company, the API interacts with TrueUSD’s smart contract, which in turn issues tokens on a 1:1 ratio and sends them to the provided wallet.

Once the tokens reach your wallet, they can be used for anything you need. TrueUSD tokens combine the best of both world’s - the stability and trust of fiat and low fees, quick transfer times, and global reach of cryptocurrencies.

If you want to convert TUSD back to US Dollars, a reverse procedure takes place. The user sends TUSD tokens back to the smart contract address, which notifies the trust company and triggers a fiat transfer back to the user’s account.

Such a system utilizes multiple API’s and makes controlling the tokens supply effortless and superior to the previous alternatives.

The current fees for purchasing and redeeming TrueUSD to USD are $75 or 0.1%. Sending TrueUSD between Ethereum wallets costs 0.1%.

Here is a summary of the TUSD token benefits:

Legal Protection. The company publishes regular attestations that come with strong legal protection provided by the escrow accounts.
Redeemable for USD. Any individual or organization that passes AML/KYC check on the TrustToken platform can redeem TUSD for USD. However, the minimum withdrawal amount is $10 000.

Trustworthy Fund Management. The way TrueUSD’s system is set up, it allows you to exchange USD directly with escrow accounts by design instead of wiring money through TUSD network.

Full Collateral. A single TUSD token is always collateralized by USD held in the escrow account company. New tokens are minted and burned by the publicly audited smart contracts.
Regular Attestations. All holdings of escrow accounts are subjected to regular attestations that are published openly.

A rule of thumb when dealing with USD-pegged stablecoins is not to buy them for more than $1.05 equivalent of tradeable crypto. Otherwise, it is just not worth putting your money at risk.

How to Get TrueUSD (TUSD) tokens?

There are three ways how one can obtain TUSD tokens:

Getting them via one of the following exchanges:

Binance (tradeable with BTC, ETH, USDT, BNB).
HitBTC (tradeable with BTC, ETH, USDT, DAI, XMR, NEO, LTC, ZRX).
Bittrex (tradeable with BTC, ETH, USDT, USD).
Kryptono, Upbit (tradeable with BTC, ETH, USDT).
Cashierest (tradeable with BTC, ETH, KRW).
Hotbit, Bit-Z (tradeable with BTC, ETH, USDT).
P2PB2B (tradeable with BTC, ETH).
Vebitcoin (tradeable with BTC, ETH, TRY, ADA, TRX, MIOTA, XVG, BTG, ETC).
HBUS, OKEx (tradeable with BTC, USDT).
CPDAX, DigiFinex, CoinTiger (tradeable with BTC).

Purchase TUSD through the TrueUSD application (must pass KYC/AML).
Obtain TUSD using instant exchanges like ShapeShift, Changelly, Faast or others.

How to Store TrueUSD (TUSD) Tokens?

TrueUSD is an ERC-20 token issued on the Ethereum blockchain. It can be stored in any wallet supporting ERC-20 standard. The most popular options include MyEtherWallet, MetaMask, Mint or Jaxx wallets. If you are unsure how to set up an Ethereum wallet, check out our quick guide which explains it.

Current State of the Project
As of November 2018, TrustToken has held their operations to a high standard and provided a decent stablecoin with a growing community. The TrueUSD token is being listed on increasingly more exchanges, and the company publishes regular attestations on a monthly, and, at times, bi-weekly basis. All of them can be found on the TrustToken’s blog.

In the near future, the team expects to release new cryptoassets, namely TrueEuro, TrueGold, TrueBond, and TrueYen. Besides, TrueTokens fans can expect stable baskets of tokenized goods such as precious metals or real estate. All these assets should be listed on exchanges for trading.

Images source

Reference from here