What Is TrueUSD (TUSD) and Is It a Safe Stablecoin
2 min read · · Korean original
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A stablecoin is a coin whose value is pegged to an asset such as the US dollar or gold. Stablecoins have become very popular as a way to preserve value in the highly volatile crypto ecosystem. In this post, we'll look at what TUSD is, how it works, and how safe it is.
What Is TUSD?
TUSD is a stablecoin pegged 1:1 to the US dollar. TUSD is said to hold an equal amount of dollars in reserve for every TUSD token in circulation.
TUSD is based on the widely used ERC-20 token standard and can be used across various blockchain networks and dApps. Like other stablecoins, TUSD lets users trade or take part in DeFi projects and more.
TUSD uses Chainlink's Proof of Reserve (PoR) technology to verify its off-chain reserves on-chain in real time. It is also compatible with more than 10 blockchain networks, including Ethereum, TRON, and BNB Chain, and has been integrated with several DeFi platforms.
How Does TUSD Work?
TUSD runs on smart contracts on the blockchain and can be redeemed for US dollars at a 1:1 ratio at any time. To buy TUSD, you either swap another coin for it on an exchange or deposit USD directly from a bank account.
Currently, the three stablecoins supported by Binance, the world's largest exchange, are Tether (USDT), FDUSD, and TrueUSD (TUSD).
When TUSD is removed from circulation, the smart contract immediately burns that amount of tokens, and they are removed from TUSD's circulating supply. TUSD charges no fees for purchase or redemption transactions.
Is TUSD Safe?
TUSD is a stablecoin run by Justin Sun of TRON, and it uses Chainlink's Proof of Reserve system to automatically verify its reserves. However, with several rumors about him still circulating, there is no guarantee that this stablecoin is 100% safe.
That said, the same goes for Tether and FDUSD as well. With any stablecoin, there is still a very small but real risk that it de-pegs and loses its value.
Which Blockchain Networks Can TUSD Be Used On?
TUSD can be used on multiple blockchain networks, including Ethereum, TRON, Avalanche, BNB Chain, Fantom, and Polygon. This cross-chain compatibility lets you transfer and use TUSD across a wide range of platforms and protocols.
