Research Summary
The report provides an in-depth analysis of TrueUSD (TUSD), a fully collateralized stablecoin. It discusses TUSD’s performance, supply, reserves, peg, usage, and partnerships. The report also addresses security concerns related to TUSD’s private keys and vendor data leaks.
Key Takeaways
Performance and Supply
- Supply Reduction: TUSD’s supply fell for the first time in 2023 to 2.3 billion. The number of holders remained largely unchanged. The supply on TRON decreased by 30%, and on Ethereum, it fell by 61%.
- Reserve Transparency: TUSD leverages Chainlink’s Proof of Reserves for transparency. It added a new partner, MooreHK, to offer daily reserve attestations, enhancing its transparency further.
Stability and Usage
- Peg Stability: TUSD maintained a stable peg throughout 2023, with a median daily range of $0.0028, highlighting its stability despite trailing USDC and USDT.
- Usage and Holders: The number of TUSD transactions peaked in Q2 2023. Despite the supply growth, the number of unique addresses holding TUSD barely changed. The majority of TUSD on TRON was held in Binance wallets.
Partnerships and Security Concerns
- Partnerships and Integrations: TUSD has been actively expanding its partnerships and integrations, enhancing its ecosystem and driving the stablecoin’s adoption and growth. It has been listed on multiple exchanges and has been supported by Binance Launchpool projects.
- Security Concerns: TUSD navigated through a series of security concerns following incidents involving its partners and related smart contracts. A potential vulnerability related to TUSD’s private keys was highlighted, raising questions about the security of the reserves backing TUSD and the integrity of the minting process.
Actionable Insights
- Monitor TUSD’s Transparency Efforts: TUSD’s commitment to transparency, as evidenced by its use of Chainlink’s Proof of Reserves and partnership with MooreHK for daily reserve attestations, is noteworthy. Stakeholders should monitor these efforts to ensure continued transparency.
- Assess Impact of Partnerships: TUSD’s active expansion of partnerships and integrations could potentially drive its adoption and growth. Stakeholders should assess the impact of these partnerships on TUSD’s performance.
- Consider Security Concerns: The security concerns related to TUSD’s private keys and vendor data leaks highlight potential risks. Stakeholders should consider these concerns when evaluating TUSD.
