The launch of Verified USD (USDV) has been announced by the Verified USD Foundation. USDV is a stablecoin driven by the community and fully supported by the unparalleled on-chain transparency and stability of a basket of tokenized US Treasury Bills (T-bills). As a native omnichain stablecoin compatible with the ERC-20 standard, each USDV is tied to the equivalent value of 1 US dollar.
The underlying reserve of USDV consists of tokenized real-world assets (RWA), providing a compelling alternative to traditional stablecoins. In addition to its stable value derived from on-chain T-bills, USDV offers real-time verification through proof-of-reserve. This bridges the information gap between the stablecoin issuer, verified minters, and holders.
The Verified USD Foundation, a non-profit organization, is dedicated to cultivating a sustainable and progressive stablecoin ecosystem. This ecosystem facilitates equitable value-sharing among contributors crucial for stablecoin use cases and adoption. The foundation achieves this goal primarily through ColorTrace, a novel value attribution algorithm developed by LayerZero. ColorTrace ensures a fair and transparent distribution of rewards among verified minters, eliminating disputes.
“USDV represents a major evolution in stablecoin technology,” remarked Matthew Commons, President of the Verified USD Foundation. “Unique among stablecoins, USDV enables a collaborative community approach where those who create stablecoin use cases can be an integral part of the stablecoin value creation. The Foundation is excited to work with contributors in unlocking new use cases with real-world impact, backed by unmatched transparency and stability.”
“The ColorTrace algorithm solves the challenge of attribution for fungible tokens,” stated Ryan Zarick, CTO and Co-Founder of LayerZero. “The applications of the ColorTrace algorithm to existing RWA-backed assets – like stablecoins – are exciting and have the potential to create a more fair and equitable distribution across all contributors to an ecosystem’s success.”
Protocols and contributors supporting USDV at launch
23 Industry-leading CeFi, DeFi and GameFi contributors are supporting USDV at launch, including abracadabra.money, Animoca Brands, BasedApp, BIT Exchange, Bitget Exchange, Cactus Custody, Coin98 Finance, Curve Finance, Beam by Eco, Frax Finance, LayerZero, Matrixport, Maverick Protocol, Reunit Wallet, Stargate Finance, SushiSwap, Term Finance, Trader Joe, Velodrome Finance, Wintermute, Wombat Exchange, WOO Network and zk.Link.
1/ Introducing #VerifiedUSD ($USDV)
A native omnichain #stablecoin backed 1:1 with tokenized short-term treasuries and repos, and pegged to the equivalent value of 1 US dollar.
— USDV.Money (@USDV_Money) November 14, 2023
USDV is also integrated with LayerZero’s Omnichain Fungible Tokens (OFT) Standard, a widely adopted standard designed for seamless operation across multiple blockchain networks. The stablecoin will initially launch on the Ethereum, BNB Smartchain, Avalanche, Arbitrum and Optimism blockchains, with the technological capability to interoperate across all chains supported by LayerZero (currently 40+).
Angus Buttar, Foundation Lead at the Stargate Foundation said: “With USDV launching as a native omnichain token, Stargate is well placed to help ensure users can access it wherever they need to. We’re also excited to see the opportunities that USDV provides to users and protocols across DeFi.”
$USDV is built using ColorTrace, a novel algorithm developed by LayerZero which presents the first practical solution for on-chain attribution in fungible tokens.