What Is TrueUSD (TUSD)?
TrueUSD (TUSD) operates as a stablecoin that maintains a fixed 1:1 value ratio with the U.S. dollar. This stability is achieved by maintaining a corresponding reserve of USD for each TUSD token in circulation.
Built on the ERC-20 token standard, TUSD boasts compatibility with multiple blockchain networks and decentralized applications (DApps). Similar to its stablecoin counterparts, TUSD’s primary objective is to enable swift market entry and exit in the realm of cryptocurrencies, bypassing the prolonged settlement times typical of conventional banking systems. TUSD facilitates seamless trading for users seeking to transition between cryptocurrencies, and it acts as a vital link between the world of digital assets and fiat currencies, devoid of the inherent volatility associated with traditional cryptocurrencies.
How TrueUSD (TUSD) Works?
Operating on the Ethereum blockchain, TrueUSD leverages smart contracts to facilitate the issuance and redemption of a tokenized manifestation of the U.S. dollar, offering enhanced efficiency and accessibility to users.
Upon acquiring TrueUSD (TUSD), the underlying smart contract is triggered, automatically generating an equivalent TUSD amount, subsequently augmenting the circulating token supply. Conversely, when users opt to convert their TUSD into traditional USD, a smart contract promptly initiates the removal of these tokens through burning, effectively and irrevocably reducing the TUSD circulating supply. Simultaneously, an equivalent value of U.S. dollars is credited to the user.
An intrinsic benefit of TrueUSD lies in its fee-free nature for both purchasing and redeeming transactions, enhancing its appeal and usability. Notably, TrueUSD’s revenue model hinges on interest accrued from the U.S. dollar holdings in its accounts, presenting a sustainable approach to maintaining operations.
In essence, TrueUSD merges the convenience of blockchain-based transactions with the stability of the U.S. dollar, fostering a seamless and reliable bridge between the digital and fiat realms while prioritizing cost-effective and transparent processes.
Looking for Blockchain Development, NFTs, Website Design, Token Creation, or Other services? Reach out to us at WebGTR. Let’s discuss and bring your vision to life.
Website | Twitter | Instagram | Telegram Official Group | WhatsApp