Add TUSD to AAVE v3 Polygon

Governance New Asset
1

Summary

We propose to add the stablecoin TrueUSD (ticker TUSD) as collateral on the Aave v3 Polygon network. TrueUSD is already deployed as collateral on Aave v3 Ethereum Mainnet.

Motivation

The stablecoin has proven to be one of the safest in the industry. Market data shows that it is growing in use among the different chains. It is the only stablecoin that has real-time, 24/7 attestations from Armanino, a top US accounting firm, providing assurance that the token is fully collateralized by US Dollars.

Specification

TrueUSD is the first digital asset with live on-chain attestations by independent third-party institutions and is backed 1:1 with the U.S. dollar. So far, it has been listed on more than 100 trading platforms such as Binance, Kucoin, Huobi Global, Crypto.com OKX, Poloniex and Bittrex, and is live on ten mainstream public chains including Ethereum, TRON, Polygon, Avalanche, BSC, Fantom and Cronos, with its total supply surging past 1.4 billion. TrueUSD is audited real-time by Armanino, one of the largest U.S.-based accounting firms, to ensure the 1:1 ratio of its USD reserve to the circulating token supply and the 100% collateral rate. Users can access the publicly available audit results via the official website trueusd.com at any time.

During 2021, TUSD started working with over 40 DeFi projects that include lending protocols such as AAVE, Compound and Venus, and all of which TUSD has decently high utilization rates as a collateral asset. Amongst these collaborations, the TUSD metastable pool on the Balancer-Polygon network brought in the most user participation and as of today, remains the protocol in the network with the highest liquidity (currently standing at 72M).

TUSD is currently live on multiple leading CEXs with 24H volume of over 85M. TUSD is available on 10 public chains, which provides TUSD holders with diverse means to participate in DeFi across various chains. As of December 2021, TUSD active holder addresses have exceeded 400K.

TUSD is also one of the main USD pegged stable coins used in DeFi protocols, and is supported by major OTC desks. The TUSD overall market cap is 1,476,390,601$, of which 1,137,574,665$ on the Ethereum Mainnet.

The TUSD TVL on AAVE V2 (Ethereum mainnet) market is 106.37M$ and the highest supply exceeded 155M$. TUSD Market Cap increased over 280M$ during the last three months as the graph suggests:

TUSD aims to be one of the most used and transparent stablecoins as well as a high quality asset in the Polygon ecosystem.

Market Data for TUSD token

Market Data for TUSD token

Market Cap: $1,478,451,851.40

24h Volume: $126,735,297.91

TUSD (on Polygon): $22,687,294.74

Exchanges: Uniswap, Curve, Convex, AAVE, Balancer, Compound, TrueFi, PancakeSwap, Ellipsis, Venus, Alpaca Finance, VVS, Scream, Spookyswap, Sun.io, Beethoven, and more.

Maturity: Launched 1/3/18

Benefits to Aave Community

We expect TUSD to see substantial growth in the Polygon ecosystem. Aave would be the first platform on Polygon to support TUSD as a collateral asset, which as a fiat-backed and third-party attested token to support liquidity into DeFi.

TUSD can play a unique role in the Aave ecosystem in following ways:

  • As a transparent stablecoin with each token backed 1-to-1 by US dollars in escrow, users can stake TUSD into lending protocols like AAVE and borrow assets to increase asset efficiency which will help grow the overall market securely and reliably. This can be evidenced in TUSD market data in the Aave V2 market, where TUSD has about 100M supply with over 60% utilisation rate.
  • Looking into the future, the TUSD metapool would like to be integrated into the Balancer <> Aave boosted pools on the AAVE Polygon market. We believe that this will increase gas and yield efficiency of TUSD metapool LP, and let high quality LP assets be part of the Aave market and grow its ecosystem through a fiat-backed stablecoin.

About the Author and relationship with TUSD
My name is Andrea and my main position is Partnership Lead at BalancerDAO.
TUSD has been a long-term partner of Balancer with an active pool on our Polygon Dex with over 70M USD in value.
We believe that the addition of TUSD would be equally beneficial for AAVE, Balancer and its trading volume and TUSD which will increase market penetration in the Polygon ecosystem.

Resources

Website: https://trueusd.com/

Whitepaper: https://trueusd.com/pdf/TUSD_WhitePaper.pdf

TUSD on Ethereum: TrueUSD: TUSD Token | Address 0x0000000000085d4780b73119b644ae5ecd22b376 | Etherscan

TUSD on Polygon: TrueUSD (TUSD) Token Tracker | PolygonScan

ChainLink Oracle

Audits: TrustExplorer by Armanino: Real-Time Attest for TrueCurrency

Community

Twitter: https://twitter.com/tusd_official

Medium: https://trueusd.medium.com/

Telegram: Telegram: Contact @TUSDofficial_EN

Next steps

  • Request to the Aave community to vote (YES/NO) for adding a TUSD market on the Aave Protocol on the Polygon network.

  • After the Acceptance of the onboarding of TUSD to Aave by the community, we would like to propose the following risk parameters:

    • LTV: 75%
    • Liquidation Threshold: 80%
    • Liquidation Bonus: 5%
    • Reserve Factor: 10%

  • V3 Efficiency mode USD stablecoins

    • LTV: 97%
    • Liquidation Threshold: 97.5%
    • Liquidation Bonus: 2%
1 Like
2

Thank you @Andrea81 for putting this together!

This seems really a no-brainer:

  • First of all, TrueUSD is already listed on AAVE’s Ethereum market. Therefore, I really don’t see why not having it also on Polygon.
  • Moreover, stablecoins are the quintessence of lending and borrowing platforms. Therefore, the more the better! Especially because it will coontribute to strenghten the Polygon market, which should definitely grow more.
3

Hi AAVE Community, this is Joyce from the TUSD team! First of all, I’d like to thank @Andrea81 for your ongoing support!

Now as for the adding TUSD to AAVE v3 Polygon proposal, I’d like to mention that TUSD has expanded into many new ecosystems in the past year, and Polygon is one that we are particularly focused on and are very optimistic in furthering how TUSD and Polygon ecosystems can work together. TUSD has grown rapidly since launching on the Polygon network and has partnered with top DeFi projects, with TUSD’s stable pools TVL at Balancer at $65M and Curve at $5M, with more projects to come.

If listed as a AAVE v3 Polygon collateral asset, we believe TUSD will be able to bring more TUSD holders and whales to participate in the Polygon ecosystem, as well as providing a transparent and stable stablecoin option that is backed 1:1 to the US dollar with live-attestation reports published daily.

With that, I hope to hear from the community soon and look forward to working together in furthering our collaboration. Thank you!

1 Like