TrueUSD proposal update proposal

Hello, Compound community,
Thank you! With the support of the community, TrueUSD has been added as a new market in Compound after gaining 100% support in the recent vote.
It has been a while since TUSD was added to Compound Finance and performed well as a new market. The circulation and active address number have increased dramatically in the last two months with billions of dollars in monthly transaction volume. Recently, we integrated Signet by Signature Bank as a new banking partner, providing additional real-time settlement options for TUSD users and holders.
Now is an excellent time to update TUSD market parameters and make TUSD a more desirable vehicle for financial opportunity on Compound which also makes Compound an attractive Defi option for the growing TUSD community. Diversifying the portfolios and market shares of stable coins on Compound will provide the Compound community more options to park and secure their assets. As the first independently verified and live attested digital asset redeemable 1-for-1 for US Dollars, TUSD represents the best fit candidate for a diversified stable coin portfolio.
TrueUSD would like to propose the following update:
1) Improve the TUSD collateral rate to 75%
2) Distribute COMP rewards to TUSD market participants.

We are planning the following parameters. Please make a comment and share your opinion with us.
Update COMP speed for TUSD, USDC, USDT, DAI markets
From
Comptroller._setCompSpeed(“cUSDC”, 67000000000000000)
Comptroller._setCompSpeed(“cUSDT”, 9650000000000000)
Comptroller._setCompSpeed(“cDAI”, 67000000000000000)
To
Comptroller._setCompSpeed(“cUSDC”, 63000000000000000)
Comptroller._setCompSpeed(“cUSDT”, 8825000000000000)
Comptroller._setCompSpeed(“cDAI”, 63000000000000000)
Comptroller._setCompSpeed(“cTUSD”, 8825000000000000)

Calculated by the COMP distributed per day, it is 115 for TUSD, USDT market and 827 for USDC, DAI market.

We hope to hear from you and would love to provide any additional support or resource that could facilitate the execution of the proposal.

If you like to know more about TUSD, you can find us here :point_down:
TrueUSD.Website: https://trueusd.com/
Twitter: https://twitter.com/tusd_official
Medium: https://trueusd.medium.com/
Telegram EN: Telegram: Contact @TUSDofficial_EN
Telegram CN: [Telegram: Contact @TUSDofficial_CN

Yours,
TrueUSD

  1. Agree 100% we need to distribute COMP reward to TUSD just like every other token in compound. Frankly i am not clear why it wasn’t included in the initial proposal for golive.

  2. For Joyce/TUSD, you guys need to make the token much more accessible, liquid and convertible from popular wallets like coinbase. As it stands the spread to convert to/from TUSD is insane for any volume, i can only swap batches of $25k ether per trade and even then, still losing thousands $ in slippage. (I used binance’s wallet ).

It involves: converting my tokens (ie usdc) to ether first (because there is only ether/tusd market that’s anywhere close to being liquid) → sending ether to binance wallet / swap (because most wallet include coinbase do not support TUSD swap) → convert from ether to TUSD in $25k chunks in multiple transactions while losing crap load $ in spread/slippage + fees → send TUSD back to my original wallet…to be able to finally use it in compound

vs something like USDC, which i can convert most tokens to/from USDC directly in my primary wallet and done in 1 step with very little slippage.

  1. Does anyone know what happened to TUSD in the last few days, looks like the market liquidity went nuts resulting in the borrow api shooting up from <1% to 4% :confused:

I see that one address is currently supplying over 90% of the TUSD present in the cTUSD market:

They have also borrowed over 30k COMP in order to farm COMP rewards, with the COMP tokens held in the wallet and used to vote for the TUSD addition proposal.

The rest of the wallet’s behavior is consistent with farm and dump defi participation (Circular supply/borrow of the same assets on Aave, etc).

In light of these facts, I have a few questions:

  • Please confirm the owner of the above mentioned wallet. Is it Justin Sun or a related entity?
  • Does the wallet owner have any financial ties with TrustToken? Are they a beneficial owner of or under common control with TrustToken?

In the current state, I don’t see how offering COMP rewards for TUSD would be beneficial for Compound. It seems likely to increase rather than reduce ownership concentration in the protocol. And the behavior of the TrustToken side has been completely lacking in transparency.

7 Likes

In December 2020, TrustToken announced:

Today, we’re proud to announce TUSD will enter the next stage of its growth. Ownership of TUSD will be moving over to an Asia-based consortium that will be working with Tron to support TUSD across Ethereum, Tron and other blockchain networks.

This has been discussed on several forums including MakerDAO and Aave. I also commented regarding the topic on Twitter in response to some misinformation.

I believe @monet-supply 's questions requesting additional transparency are fair and warranted when deciding whether or not to incentivize the TUSD market.

1 Like

Well that’s kind lame. So basically TUSD just took bunch of their own tokens and flooded compound making up 90%+ of its TUSD market to cast vote so they can earn compound….isn’t that precisely what you not suppose to do as a stable coin owner…and goes against what compound was intended…not to mention artificially gapped up the borrow rate for the rest of the folks who are actually trying to borrow TUSD to support it.

Think I am just going to exit the whole position if a single player can manipulate a token like that.

Thanks for your suggestions and interest in TUSD! We are actively working on partnering with more wallets, exchanges, and OTC platforms to support TUSD. We are proud of the progress we made recently and will include the details in our next reply. We also update everything on our Twitter twitter.com/tusd_official.

Thanks for your due diligence. As for your questions:

  1. Who the wallet you speak of belongs to, we do not know. There is also no way for us to find out, as wallet owners are anonymous which honors the value of blockchain technology. How wallet owners wish to use their assets is also entirely up to them and to their own discretion.
  2. If you mean to ask whether the funds in this wallet are TrustToken or TrueUSD’s, we can confirm NO. All TUSD are held in escrow accounts with 24/7 live on-chain attestations by Armanino, which you can see here: TrustExplorer - real-time audit. TUSD holders mint and redempt their TUSD directly with our financial institution partners, such as Silvergate, PrimeTrust, Signet, etc. TrueUSD or TrustToken have no access to their funds.
  3. About this address, thanks for sharing. We looked into more details, there are 37K COMP, 16512 AAVE and 11K WBTC and more. More importantly, he/she holds COMP rewards. We don’t see the farm and dump you mentioned. From what we do see, the wallet owner has borrowed about $1 billion and supplied $1.5 billion on AAVE, and surely Compound would like to see the same support for COMP.
  4. We don’t want to pick sides and would want everyone to enjoy the self governing community Compound founders created. However I’m very curious, as a diehard Compound supporter yourself who is very active on the forum and cares about the health of the entire ecosystem, how much COMP have you held since COMP launched? and how much money you put into Compound? Let’s build the community together and welcome more whales and holders of any size.

In light of your concerns regarding a wallet address, yes, we can all see this wallet belongs to a whale on Compound, AAVE, and other defi platforms. Whales in any ecosystem expands the platform’s strength and growth, so we are happy to see a whale using COMP to obtain TUSD, USDC, DAI or any form of stablecoin he/she would like. A higher utilization rate will incentivize more assets to join Compound. Isn’t this what we all want to see?

From a risk management point of view, having a diverse stablecoin options is beneficial for funds safety on a decentralized lending platform.Relying on USDC as the only regulated stable coin backed by the US dollar on the platform is not sustainable. It’s reasonable to support TUSD, a well-performing asset market, considering its total supply and total borrow rates.

From the Compound growth point of view, the current TVL on Compound is lower than AAVE. Our collective goal is to boost the TVL and make COMP holders proud.
This is also why diversification of multiple stablecoins and additional rewards activities on Compound should be encouraged to attract more users to participate on Compound. If you are a Compound lover, and wish to see the community flourish, you want to see holders of any size find their spot in Compound. The amazing thing about Defi is that it is built on liquidity and cash flow, funds moving around means the platform is active and energetic.

From TUSD point of view, we would like to see more whales come over to where TUSD is integrated, as we want to see our partners flourish as well.

Moreover, TUSD strives to expand into more quality platforms and applications. TUSD market cap and holders have seen rapid growth in the past quarter, and the momentum is expected to be maintained if not expedited. To name a few, other than the Compound market, TUSD has opened a metapool on Curve.fi with over 4M in votes from veCRV holders. TUSD is also exploring partnerships with various projects on BSC, including listing on Ellipsis and adding TUSD in the Syrup pool on PancakeSwap. TUSD also launched on TRON and joined SUN.io and the JUST DeFi ecosystem. To facilitate the use of TUSD and make TUSD more accessible for users, TUSD works with leading mainstream exchanges with trading pairs and rewarding activities. A recent example would with Binance on their first NFT auction campaign, where rewards are given in TUSD. We will share all the latest TUSD progress whenever one is finalized.

Most importantly, TrueUSD’s commitment to transparency for our community remains strong and will not change. Under Techteryx ownership led by Ms Jennifer Jiang, a business executive with extensive experience in traditional finance, currently worth over US$3.0 billion and is deeply connected with traditional industries.
TrueUSD still prioritizes trust and transparency with four key points:

  1. The same TrustToken team will continue to be deeply involved in running TUSD and for compliance and underlying reserve management.
  2. The underlying reserves will continue to be audited and attested to on a live basis by Armanino LLP, a top 25 accounting and audit firm based in the US (https://www.armaninollp.com/) who, in addition to live attestations, also provide “proof of reserves” audits for exchanges (Proof of Reserves | Armanino).
  3. All TUSD funds are held at fully licensed and regulated banks and trust companies in the United States and Hong Kong, including PrimeTrust (https://www.primetrust.com/ ), Silvergate Bank (https://www.silvergatebank.com/), First Digital (https://1stdigital.com/ ), and Signature Bank (www.signatureny.com). All funds are held in FBO accounts for the benefit of TUSD token holders and cannot, under any circumstances, be withdrawn by its owners for any proprietary use. All minting and redemptions of TUSD will continue to be verified by these custodians and banks regulated by U.S. and Hong Kong regulators before any TUSD can be created or burnt.
  4. TrueUSD private keys are managed in the same way as before, by the new TUSD management team with multisignature, a Gnosis SAFE (gnosis-safe.io ) solution.

I again emphasize TUSD’s priority on transparency and security, and having multiple third-parties for fund attestations and escrow is evident to that. Here on Compound, we aim to help each other mutually grow and serve our communities!

Understand your concerns regarding a single player manipulating a market. As you can see from my message above, we want to encourage more whales to come over to help our partner ecosystems grow, and TUSD funds are fully in escrow and attested.

I would just like to confirm a couple of the points @monet-supply brings up here which seem most important:

  1. The account is supplying close to 116m TUSD out of 121m total supply in Compound
  2. They have borrowed over 30k COMP, used for voting in the TUSD proposal.

Attaching some charts that show the account’s activity, which anyone can verify here: https://mariorz.github.io/compcharts/?0x3ddfa8ec3052539b6c9549f12cea2c295cff5296

3 Likes

they borrowed comp to vote, not farm

Technically they’re doing both :slight_smile: - Compound | Profile - 0x3ddfa8ec3052539b6c9549f12cea2c295cff5296