Verified USD

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Discover Verified USD's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Verified USD?

Verified USD (USDV) is a community-driven stablecoin pegged 1:1 to the US dollar, fully backed by tokenized US Treasury Bills (T-bills) and other high-quality real-world assets. It is built on the Omnichain network, compatible with the ERC-20 standard, and supports seamless interoperability across multiple blockchain networks. USDV aims to provide transparent and equitable distribution of rewards to minters and the community, ensuring a stable value through its reserve assets.

How is Verified USD used?

Verified USD (USDV) is a stablecoin pegged 1:1 to the US dollar, ensuring a stable value. It is backed by tokenized short-term treasuries and repos, providing real-time verification through proof-of-reserve. Here are some ways USDV is used:

  1. Store of Value: USDV can be stored as a secure and stable asset in a cryptocurrency wallet, providing a hedge against market volatility.

  2. Trading: USDV can be utilized for trading other cryptocurrencies on various exchanges, offering a stable medium for transactions.

  3. Payments: USDV can be employed for online and offline payments, providing a reliable and stable means of exchange.

  1. Remittances: USDV can be used to send money swiftly and cost-effectively, making it suitable for cross-border transactions.

  2. Ecosystem Participation: USDV allows partners to become "Verified Minters" by completing KYC, enabling them to mint USDV and access real-world yield. The ColorTrace algorithm ensures fair and transparent yield sharing among ecosystem participants.

USDV's stability, transparency, and accessibility make it a versatile tool for various use cases in the cryptocurrency space.

How do I store Verified USD?

To store Verified USD (USDV) tokens securely, it is recommended to use a cold wallet, which is a type of offline storage. There are two main types of cold wallets:

  1. Paper Wallet: This involves generating a public and private key offline and printing them on a piece of paper. The keys are printed in the form of QR codes, which can be scanned for future transactions. This method is considered highly secure as the keys are not connected to the internet.

  2. Hardware Wallet: This is a physical device where you can store your cryptocurrency. Your crypto addresses and keys are kept in a USB drive device, and only the person possessing the USB drive can access the assets. Hardware wallets are preferred by many users, especially for storing large amounts of coins or tokens.

How to buy Verified USD?

To buy Verified USD (USDV) tokens, follow these steps:

  1. Find a Reliable Exchange: Look for a trusted centralized exchange like Binance or Bitget, where you can purchase USDV tokens. You can also use decentralized exchanges like Pancakeswap V3 (BSC) and THENA.

  2. Create an Account: If you don't already have an account on the chosen exchange, create one by following their registration process.

  3. Fund Your Account: Deposit the necessary funds into your exchange account. This can be done using various payment methods, depending on the exchange.

  1. Place Your Order: Navigate to the USDV trading pair (e.g., USDV/USDT) and place a buy order. You can set the amount you want to purchase and the price you are willing to pay.

  2. Store Your Tokens Safely: Once you have purchased your USDV tokens, consider transferring them to a cold wallet for long-term storage. Cold wallets, such as paper wallets or hardware wallets, provide an offline and secure way to store your assets.

By following these steps, you can successfully buy and store Verified USD (USDV) tokens.

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History of Verified USD

Verified USD (USDV) is a tokenized real-world asset (RWA) backed stablecoin designed for modern finance. It was launched in November 2023 by the Verified USD Foundation, a not-for-profit organization dedicated to fostering a sustainable and progressive stablecoin ecosystem. The foundation was established by two organizations: LayerZero, a Canadian-based interoperability protocol, and Matrixport, a crypto financial services company based in Singapore.

USDV is fully backed by tokenized short-term US Treasury Bills (T-bills) and pegged to the equivalent value of 1 US dollar. The underlying reserve of tokenized real-world assets (RWA) offers a compelling alternative to legacy stablecoins, providing stable value and real-time verification through proof-of-reserve. The initial underlying reserve asset is Matrixport’s Short-term Treasury Bill Token (STBT), which is pegged 1:1 with 1USD of net-asset value (NAV) and fully backed by short-term T-bills and secured reverse repurchase agreements (Repo).

USDV has native omnichain capabilities, allowing it to operate seamlessly across multiple blockchain networks. It initially launched on Ethereum, BNB Smartchain, Avalanche, Arbitrum, and Optimism blockchains, with plans to expand to more chains in the future. The token is integrated with LayerZero’s Omnichain Fungible Tokens (OFT) Standard, which enables its interoperability across all chains supported by LayerZero.

The Verified USD Foundation is committed to transparency and community involvement. It uses a novel value attribution algorithm called ColorTrace, developed by LayerZero, to ensure fair and transparent reward distribution among verified minters. This system enables contributors to mark their circulating tokens and transparently access rewards derived from on-chain reserves without dispute.

USDV has gained support from 23 industry-leading contributors, including Bitget, Curve, Matrixport, and Stargate, among others. The foundation aims to create a collaborative community approach where those who create stablecoin use cases can be an integral part of the stablecoin value creation.

Overall, USDV represents a significant evolution in stablecoin technology, offering a community-driven, transparent, and stable alternative to traditional stablecoins.

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How Verified USD works

The crypto Verified USD (USDV) is a stablecoin that rewards Verified Minters based on their contribution to the token's active circulation. Here's how it works:

Minting and Circulation

USDV is an omnichain fungible token available on multiple blockchains, including Ethereum, BSC, Avalanche, Arbitrum, and Optimism. Verified Minters, who are partners that have completed KYC (Know Your Customer) verification, can mint new USDV tokens. These tokens are marked with a unique 'color' using the ColorTrace algorithm, which identifies the original minter and tracks the token's circulation within the ecosystem. As users interact with the contracts, more tokens of the minter's color go into circulation, increasing the yield they receive.

Yield and Incentives

Verified Minters are incentivized to mint and circulate USDV, enhancing the liquidity and utility of the token. The yield is distributed fairly and transparently based on the circulation contributed by each minter. This approach encourages minters to create stablecoin use cases and promote adoption, fostering a collaborative community.

Transparency and Reserve

USDV is fully backed by tokenized US Treasury Bills (T-bills) with a duration of three months or less. The underlying reserve is transparent, with all collateral on-chain and available for review. The stablecoin uses Chainlink's 'Proof of Reserves' to provide real-time auditing, ensuring that one dollar of USDV is always fully backed by the collateral.

Omnichain Capabilities

USDV has native omnichain capabilities, allowing it to be burned and reminted on any chain it's available on. This means that while USDV is created on Ethereum, it can be seamlessly moved and used across multiple blockchains, including EVM-enabled chains like Arbitrum, BNB Smart Chain, and Optimism.

Governance and Community

The Verified USD Foundation, a non-profit organization, provides the legal, technical, and governance framework for USDV. The foundation aims to foster an inclusive community of contributors, ensuring equitable value-sharing among those who create stablecoin use cases. This approach aligns with the decentralized ethos of web3, promoting community involvement and transparency.

Overall, USDV's innovative approach combines transparency, fair yield distribution, and omnichain capabilities to create a stablecoin that rewards contributors and promotes adoption across the blockchain landscape.

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Verified USD's strengths

The token Verified USD (USDV) has several strengths that set it apart from other stablecoins:

  1. Transparency: USDV offers real-time verification through proof-of-reserve, ensuring that the underlying tokenized US Treasury Bills (T-bills) are fully transparent and accessible on-chain. This transparency bridges the information gap between stablecoin issuers, verified minters, and holders.

  2. Stability: USDV is pegged to the equivalent value of 1 US dollar, backed by tokenized short-term treasuries and repos. This ensures a stable value derived from the underlying on-chain T-bills.

  3. Fair Distribution of Rewards: USDV uses the ColorTrace algorithm, developed by LayerZero, to ensure fair and transparent distribution of rewards among verified minters without disputes. This fosters a collaborative community where contributors can share in the rewards.

  1. Omnichain Compatibility: USDV is a native omnichain stablecoin compatible with the ERC-20 standard, allowing seamless interoperability across multiple blockchain networks, including Ethereum, BNB Smart Chain, Avalanche, Arbitrum, and Optimism.

  2. Community-Driven Ecosystem: USDV has the support of 23 industry-leading CeFi, DeFi, and GameFi contributors at launch, including prominent names like Bitget, Curve, Matrixport, and Stargate. This diverse backing ensures a strong foundation for the stablecoin's ecosystem.

  3. Tokenized Real-World Assets (RWA): USDV's underlying reserve is composed of tokenized real-world assets, providing a compelling alternative to legacy stablecoins. This approach bridges the gap between traditional finance and the digital asset space.

These strengths position USDV as a revolutionary stablecoin that addresses the limitations of traditional stablecoins, offering a more transparent, stable, and equitable ecosystem for users.

Verified USD's risks

Verified USD (USDV) is a stablecoin designed to mitigate financial risks through its unique architecture and backing. Here are some key aspects that contribute to its relatively low risk profile:

  1. Tokenized Real-World Assets (RWA): USDV is fully backed by tokenized real-world assets, primarily short-term treasury bills and overnight reverse repurchase agreements. These assets are considered "risk-free" and highly liquid, ensuring that the stablecoin's value remains stable.

  2. On-Chain Transparency: USDV's transactions, minting, and redemption processes are publicly available and updated in real-time, providing full transparency to users. This transparency helps to build trust and confidence in the stablecoin.

  3. Proof of Reserve: USDV's reserves are decentralized and monitored in real-time by Chainlink, ensuring that the assets backing the stablecoin are always sufficient to match its value.

  1. Regulatory Compliance: USDV adheres to strict anti-money laundering (AML) and Know Your Customer (KYC) regulations, ensuring that it operates within established legal frameworks.

  2. Industry Support: USDV has the backing of several prominent institutions in the CeFi and DeFi spaces, including Bitget, Curve, Matrixport, and Stargate, which helps to further reduce risks by leveraging their expertise and resources.

  3. Risk Analysis: Independent risk assessments by InvestorsObserver have consistently rated USDV as a low-risk investment, indicating that the token is less susceptible to price manipulation and market volatility.

These features collectively contribute to USDV's low financial risk profile, making it an attractive option for investors seeking stable and reliable assets in the cryptocurrency space.

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Did Verified USD raise funds?

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Verified USD’s team

  • Matthew Commons: President of the Verified USD Foundation, former Algorand CFO, and a key figure in the development and growth of USDV.

Whalee AI

The fundamental analysis assistant for crypto value investors.

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