Analysis of the stablecoin "rookie" USDV: to create a native full-chain stablecoin, taking advantage of RWA to open a new narrative

作者:Nancy,PANews

By unlocking higher liquidity and facilitating more efficient allocation of capital, RWA (Real World Assets) attracts traditional institutions and crypto-native enterprises to compete for layout, thereby bringing new narrative structures and ecological participants to the crypto world.

Stablecoins are one of the main scenarios for the landing and application of tokenized RWA assets, and are becoming a new growth engine for this track. Stablecoin innovation has been facing a series of problems such as doubts about the authenticity and security of assets and high default risks. How to ensure the security and transparency of the underlying assets has become the top concern of users.

In the recent macro environment of rising U.S. Treasury interest rates, the launch of USDV, a full-chain native stablecoin backed by 100% real-world asset token reserves, deserves industry-wide attention. The underlying asset of USDV is the on-chain asset - the short-term US bond token STBT, which was launched by Matrixdock, a Tokenized RWA brand under the Matrixport Group, and USDV was first launched on five mainstream chains and supported cross-chain. So, what is innovative about USDV compared to other stablecoins, and what are the future application prospects? Let's take a closer look.

! [Analysis of the stablecoin "rookie" USDV: building a native full-chain stablecoin and taking advantage of RWA to open a new narrative] (https://cdn-img.panewslab.com/panews/2023/11/14/images/K2hHTc369Y.jpg)

Work user trust to achieve full-chain transparency and value verifiability

As the fastest-expanding segment of the crypto world, stablecoins have become the cornerstone of liquidity and the core asset of the crypto ecosystem. And as more and more institutions enter the game, the influence of stablecoins is growing. According to the latest forecast of Wall Street investment bank Bernstein, the stablecoin market will grow to $2.8 trillion in the next five years.

Trust and value stability are the anchors of stablecoins. Due to the UST thunderstorm, USDC, USDR de-anchoring turmoil and other events have triggered many chain reactions, there has been a crisis of trust among users, and ensuring the transparency, safety and reliability of assets is the basis for gaining long-term trust from users.

USDV, the native full-chain stablecoin, has made great efforts in user trust and is the first stablecoin to truly achieve full-chain transparency and verifiable value. USDV's first underlying asset, the Short Term Treasury Bill Token (STBT), is an ERC-1400 standard token, and its value is always pegged to $1 through the closing price rebase mechanism of each Treasury trading day. As of Nov. 14, STBT currently has a market capitalization of more than $110 million, according to Dune data.

! [Analysis of the stablecoin "rookie" USDV: building a native full-chain stablecoin and taking advantage of RWA to open a new narrative] (https://cdn-img.panewslab.com/panews/2023/11/14/images/X01WBEr3hJ.jpg)

STBT has built a highly transparent and audited reserve asset through a number of initiatives that provide reliability and credibility.

On the one hand, STBT can query the daily proof of reserves on Etherscan and monitor it in real time, providing an immutable record of the ownership of the underlying assets. Compared with other projects that publish asset reserves on a monthly or quarterly basis, STBT allows you to view the latest asset information on the chain at any time, making asset reserves transparent and building user trust. In addition to self-disclosure of underlying asset records, Chainlink provides STBT with real-time, third-party decentralized verification of the Proof of Reserve.

On the other hand, STBT's underlying assets are short-term U.S. Treasuries maturing within six months and reverse repo agreements secured by U.S. Treasuries. Not only that, USDV has the ability to be compatible with a variety of RWA tokens in its underlying technology, and may include other RWA assets with high liquidity and stability as collateral assets in the future.

In the implementation path of RWA assets on the chain, STBT adopts an operation idea similar to asset securitization, and effectively isolates the risks of the issuer's counterparty by establishing an orphan trust structure with complete bankruptcy isolation capabilities, forming a natural firewall. In other words, when the issuer goes into liquidation, STBT holders can get priority to receive the U.S. debt and cash assets held by the trust as repayment. Of course, for the selection of RWA assets, USDV will be done through governance to ensure that the final selected collateral assets meet the requirements. The introduction of RWA assets such as U.S. Treasuries can go a long way in boosting trust and attracting greater out-of-circle traffic.

In terms of code security, USDV's open-source smart contracts have been audited by third-party security audits by Zellic.io, Palladin, and OtterSec.

Breaking the liquidity and composability dilemma and unleashing the potential of stablecoin assets

Although USDT and USDC dominate the stablecoin market, with the changes in the market environment, the increase in user demand and the continuous expansion of application scenarios, higher requirements are put forward for the application scenarios, liquidity and participation of stablecoins.

Especially under the trend of multi-chain, users have an increasing demand for cross-chain transfer of assets between different chains, and the circulation of assets can maximize the utilization of resources and increase value to a large extent. However, most cross-chain asset solutions seem to have problems such as low efficiency and high cost, such as time-consuming and expensive through CEXs (centralized exchanges) and certain capital risks, and risks such as de-anchoring of packaged assets.

USDV empowers stablecoin liquidity and use cases by introducing innovative interoperability solutions. As an ERC-20 token, USDV can be integrated with any ERC-20 compatible DApp. At the same time, USDV also integrates the Omnichain Fungible Token (OFT) standard of LayerZero, a full-chain interoperability protocol. OFT provides a more user-friendly and efficient cross-chain transfer solution for USDV, allowing tokens to be externally combined in any DApp, and users can seamlessly swap across chains and use them in any DApp. At the same time, the standard allows for the elimination of the use of wrapped assets, which reduces the risk of the token losing its peg and allows holders to avoid certain counterparty risks.

USDV supports Ethereum, BSC, Avalanche, Arbitrum, and Optimism on the first day of release, and will continue to integrate more chains and ecosystems in the future, with the technical capabilities that can support more than 40 L1 and L2 chains for free use, which will provide users with a seamless and secure liquidity center that connects different blockchains, and users who are not familiar with on-chain operations can easily transfer assets on different chains.

It can be said that USDV has strong accessibility and cross-chain capabilities, which can greatly improve the liquidity and composability of stablecoins, provide users with a convenient and efficient fund management experience, and bring infinite imagination to the greater potential of stablecoin assets.

Introduce a fair incentive mechanism to create a self-growing community feeding ecology

Having a wide range of use cases is one of the key factors for the success of stablecoin projects, not only to enhance user engagement, but also to improve their own sustainability, thus creating a strong flywheel effect and innovation space. The construction of a sustainable scenario is inseparable from a fair and effective incentive and recognition mechanism.

Similar to the early stages of Bitcoin mining, the security and development of USDV is driven by ecosystem contributors, and economic incentives are based on the degree of contribution (i.e., the amount of USDV created in demand). In order to build an ecosystem composed of multiple influencers and contributors with self-growth capabilities, USDV has introduced ColorTrace, a value attribution algorithm developed by LayerZero Labs, into smart contracts.

! [Analysis of the stablecoin "rookie" USDV: building a native full-chain stablecoin and taking advantage of RWA to open a new narrative] (https://cdn-img.panewslab.com/panews/2023/11/14/images/AB38BeDB28.jpg)

The ColorTrace innovative algorithm can reward proportionally according to the actual contribution to the ecosystem, such as adding USDV as collateral or lending options in the cooperation agreement, deploying USDV in DEX trading pairs or pools, etc., and the greater the contribution to USDV circulation and demand, the more rewards will be obtained. The introduction of the value attribution mechanism can give full play to the advantages of large-scale ecological contributors while not affecting the free circulation of USDV as a fungible token in various ecosystems.

Such a fair and reasonable incentive mechanism can help ecosystem partners continue to contribute, thereby creating an exponential growth cycle and increasing the further flow and utility of USDV. It should be noted that USDV contributors are only open to ecosystem partners who have completed verification, and need to pass KYC or be whitelisted. This approach provides a level of transparency and effective governance and compliance.

As the issuer of USDV, the Verified USD Foundation is responsible for recruiting new ecosystem partners and formulating a roadmap and governance plan for USDV, and plans to cooperate with third-party institutions to explore more use cases of USDV in the future, build bridges for real-world assets, and provide users with a wider range of services. For example, DeFi mining, lending, staking, money management, cross-border payments, and even debit cards will be launched in the future.

In the current situation where hot money is difficult to enter, few new users and the scale of the industry is limited, stablecoins such as USDV will greatly improve the trust value of users, and at the same time, by introducing cross-chain transfer solutions and incentive mechanisms, they will capture more liquidity and innovation for the crypto market, so as to break through the bottleneck of the existing market.