Hi Compound community!
This is Joyce from the TrueUSD (TUSD) team. We are planning to launch a new proposal for adding TUSD as a collateral asset on Compound. I’m hoping to know the Compound community’s thoughts and perspectives regarding this proposal, especially regarding the proposed parameters.
TrueUSD (TUSD) is the first independently-verified digital asset redeemable 1-for-1 for US Dollars. The ERC20 stablecoin uses multiple banks, escrow accounts, and third-party attestations to reduce counterparty risk, provide transparency, and prevent fraud.
TUSD offers liquidity on dozens of leading exchanges, DeFi protocols, and is supported by major OTC desks. TUSD also supports nearly instant minting and redemption speeds through the Silvergate Exchange Network (SEN) and PrimeX by PrimeTrust.
TUSD was first launched on Compound as an integrated asset in May 2021, and has since performed well. As performance has also been steady, I believe now brings an opportunity to upgrade TUSD into a Collateral Asset on Compound to bring users a trusted, reliable, fiat-backed stablecoin for (what collateral assets are used for).
（1) Risk assessment perspective
Having TUSD as a collateral asset on Compound has always been something the TUSD team aim to achieve. We are happy that we’ve made progress with the risk assessment since our last proposal, where we received valuable feedback from @pauljlei (from Gauntlet) and @cylon (from OpenZeppelin). This time, we would like to express that we are fully prepared.
The market risk assessment by @pauljlei was extremely valuable information for us in learning about the parameter while assessing the safety of a stablecoin from a lending protocol’s perspective. From the analysis, we are pleased to see that the Gauntlet team concluded their report by deeming the TUSD token as an asset that is ‘safe to enable TUSD as collateral’. Currently, we are in contact with the Gauntlet team to see if they are able to provide another updated TUSD market assessment. For the TUSD contract security, our Devs worked together with OpenZeppelin @cylon to successfully identify and patch the Compound-TUSD integration bug. The experience and process was shared in OpenZeppelin’s Twitter space, which can be found here, and more details on the blog.
During the time preparing for this proposal, we’ve been paying attention to the Compound protocol updates and would like to give our congrats on Compound III! We’ve also put TUSD market on Compound accessed to a wider range of users by integrating TUSD market on Compound to one of the leading exchange OKX staking business. By doing this, it has increased users’ attention on Compound TUSD market and will further deepen their understanding of Compound protocol.
(2） TUSD in DeFi
TUSD has made efforts to expand on different networks and cooperate with the best DeFi projects on those chains to provide DeFi users with a safe, secure, and reliable stablecoin. Ethereum remains as the network we care the most about. Take Curve as an example, the TUSD pools TVL on Curve has exceeded $100M. Increasingly more users in Ethereum network are getting access to TUSD and using it.
As for TUSD becoming a collateral asset, we believe it is safe and secure. Other major lending protocols like AAVE, Venus, and JustLend have set TUSD collateral factor as 80%.
I’d also like to bring forward that we are also working with ChainLink and Armanino to take the transparency and safety of TUSD to a next level in the near future. This awesome integration will be officially announced in more detail soon!
Update the TUSD Market Parameters with the following parameters:
TUSD Market Parameters (Open to Suggestions!)
- Collateral Factor: 80%
- Reserve Factor: 7.5% (as Current Market)
- TUSD Borrow Cap: No Limit
- Interest Rate Model: Stablecoin Standard
- Price Feed: Chainlink
If there is any question and concern from the community, we will try our best to answer and resolve. If there’s no further question within the following two weeks, the on-chain proposal to add TUSD as a collateral asset will be created accordingly. We hope the approximate 2-week notice period is enough time for Gauntlet, OpenZeppelin, and community developers to review and assess TUSD’s smart contract and technical security, as well as room for our teams to discuss anything if necessary.
- TrueUSD website: https://tusd.io
- TrueUSD Contract Details: TrueUSD: TUSD Token | Address 0x0000000000085d4780b73119b644ae5ecd22b376 | Etherscan
- Audit (Certik): https://www.certik.com/projects/trueusd
- Twitter: https://twitter.com/tusdio
- Telegram: Telegram: Contact @TUSDofficial_EN
- Discord: TUSD OFFICIAL
In summary, TUSD hopes to communicate more with the Compound community and would love to get your support. We look forward to hearing back from you and moving our collaboration further!