Posted: Apr 1, 2024 12:56 PM Updated: Apr 1, 2024 12:56 PM
Correction and fact check date: April 1, 2024, 12:56 p.m.
briefly
Threshold Network has launched thUSD, a USD-pegged decentralized stablecoin backed by the Bitcoin and Ethereum blockchains.
Threshold Network (T) announced the launch of Threshold USD (thUSD), a USD-pegged decentralized stablecoin backed by the Bitcoin (BTC) and Ethereum (ETH) blockchains.
thUSD’s lending system provides a unique opportunity for users to borrow using their BTC and ETH holdings without worrying about ongoing interest charges. Rather, it charges a single loan origination fee of 0.5%, making it a very economical choice for users who want to utilize digital assets without resorting to liquidation.
Additionally, the thUSD stablecoin stores all collateral directly on the Bitcoin and Ethereum blockchains, ensuring transparency and real-time verification of support, eliminating the opacity often associated with off-chain reserves and providing users and stakeholders with access to thUSD collateral. Provides clear visibility. always.
Leveraging the significant liquidity of the cryptocurrencies mentioned above, thUSD adopts a multi-collateral strategy. The minimum collateral ratio of 110% ensures stability and reliability by utilizing the security and value of Bitcoin and Ethereum. This approach strengthens thUSD’s role as a stable medium of exchange and, in turn, improves Bitcoin’s broader utility.
Additionally, thUSD operates as a modified fork of Liquity Protocol with a focus on achieving self-sustainability through the Protocol Controlled Value (PCV) framework. Unlike Liquity Protocol, Threshold USD does not use an LQTY equivalent token. Instead, all income is directed to PCV. Bootstrapping of the protocol is facilitated through initial protocol lending, eliminating the need for tokens.
The existence of the PCV ensures a predictable path and a sustainable future for the protocol. The stability pool receives funds directly from PCV instead of relying on user deposits. As a result, no spending is allocated to rewards for passive LQTY stakers, so these funds can be reinvested in the stability pool. The stability pool will continue to be replenished as the protocol expands and fees are incurred.
Threshold Network pushes tBTC bridge development amid 27% surge in native token value.
Threshold Network promotes user autonomy in blockchain by providing a variety of threshold crypto services. Among its key products is tBTC, introduced in 2023 as the first fully decentralized bridge connecting Ethereum and Bitcoin. tBTC has been operating for nearly 3.5 years and has successfully facilitated connections reaching a peak of over 2,500 BTC during that time. Serving users across multiple platforms including Solana, Arbitrum, Optimism, Polygon, and Ethereum, it has established itself as one of the most trusted bridges in the blockchain ecosystem.
Threshold Network’s native token has seen some significant gains recently, up more than 27% in the past seven days and trading for nearly 5 cents at the time of writing, according to the latest CoinMarketCap data.
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About the author
As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.
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alice davidson
As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With her keen eye for emerging trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.
more articles