USDV: A Paradigm of Stablecoin with Full Chain Transparency

In recent months, major international institutions in the traditional financial system have successively announced their future integration with Web3 technology: global payment giant PayPal launched the USD stablecoin PYUSD, Mastercard is exploring new credit card projects with wallet service providers like MetaMask and Ledger, and VISA announced a partnership with Hong Kong's Hang Seng and HSBC to experiment with tokenized deposits.

These actions indicate that regulatory standards in various countries are gradually becoming clearer, and institutions are officially beginning to lay out in the digital asset market. Traditional financial investors are starting to explore digital financial products, while emerging digital financial users continue to seek safer and more stable investment and reserve options. In the future, the boundaries between traditional and digital finance will become more blurred, and stablecoins will be a key option to further interact and integrate the two major markets at this stage.

Despite being in a monopolistic market, stablecoin users are still looking for the "best solution"

Stablecoins have become an indispensable part of the cryptocurrency trading market, with most digital assets traded against the US dollar stablecoin. They are used in payment, lending, wealth management, and other scenarios.

According to data from the website DeFiLlama, among the 127 stablecoins listed, the total market size of stablecoins is approximately $126 billion, with Tether's USDT accounting for 69% of the market share, followed by Circle's USDC.

Stablecoins come in types such as "backed by real assets," "backed by cryptocurrencies," "algorithmic," and "hybrid." Stablecoins like USDT and USDC, which are "backed by real assets," have almost monopolized the market. Other types of stablecoins are also moving towards a hybrid development with real asset backing in an attempt to improve stability and utility.

Despite USDT and USDC dominating nearly 90% of the stablecoin market, they still fail to meet users' needs for "security," "stability," and "transparency."

Historically, these stablecoins have experienced price discrepancies due to factors such as transparency, regulation, and liquidity. Additionally, in an era of multi-chain concurrency, stablecoins are often transacted across at least 50 blockchains, leading to significant losses from cross-chain bridge security incidents.

For the stablecoin market, there is still a need for "diverse choices" to reduce holding risks.

Overall, stability provided by "real assets" is already a market consensus. The key to the success of the next-generation stablecoins lies in which stablecoin ensures cross-chain security, possesses asset transparency, has a wide range of trading scenarios, and maintains a fast and stable creation and redemption mechanism. The "USDV" initiated by the Verified USD Foundation is a transparent stablecoin with all-chain transparency that is poised to bring a new outlook to the market.

USDV: A full-chain native stablecoin backed by real asset tokens

USDV is a full-chain native stablecoin backed by real asset tokens, using the STBT token based on U.S. short-term national debt as the underlying asset, providing true full-chain transparency. It can be verified at any time, supports instant redemption, and achieves 100% backing by real assets, offering higher security and stability, embodying its core spirit — Verified value on any chain.

USDV is a native ERC-20 token that adopts LayerZero's OFT Omnichain Fungible Token standard, allowing it to freely circulate on Ethereum, BSC, Avalanche, Arbitrum, and Optimism from the moment of launch, with the technical foundation to operate on over 40 L1 and L2 chains in the future.

With the emergence of more public chain protocols, USDV's extensive accessibility and powerful cross-chain capabilities will provide users with more diverse and flexible options. In terms of technology and ecosystem, USDV has integrated its smart contracts with the innovative value attribution algorithm "ColorTrace" to encourage more developers and projects to choose USDV, promoting and expanding the long-term development of the ecosystem.

Feature One: Asset Security and Stability Based on STBT (Data)

USDV's underlying asset STBT Short-term Treasury Bill Token is a short-term U.S. debt token promoted by service provider Matrixport, designed for institutions and qualified investors.

According to STBT's documentation, its underlying reserve assets are current market "risk-free assets": U.S. short-term national debt maturing within 6 months, and the Federal Reserve's overnight reverse repurchase agreement (ON RRP) collateralized by U.S. Treasury securities. This guarantees the stability of USDV's value. The process of exchanging funds for U.S. Treasury securities or other high-quality collateral assets with the Federal Reserve involves quick swaps and returns, reducing volatility significantly.

The STBT smart contract has undergone strict checks and audits by Pancake Swap, Alpaca Finance's service from BlockSec, as well as LayerZero, Jump, and Solana Foundation's collaboration with Zellic, two well-known security auditing companies.

Feature Two: Algorithm provided by LayerZero's full-chain technology

USDV's stablecoin ecosystem reward mechanism will operate using an innovative algorithm called ColorTrace developed by LayerZero Labs.

One of the most notable cases from their development team is the LayerZero protocol used in the most talked-about NFT "Gh0stly Gh0sts" in April 2022. It can interconnect assets, information, data, and contracts on different blockchains to achieve an omni-chain feature. With the rise of public chain development, users often need to transfer assets across different ecosystems, but cross-chain bridges are often hacked. LayerZero uses an ultra-light node model, split into an Oracle and a Relayer, reducing costs while enhancing the security of message delivery and asset transfers.

USDV uses the ERC-20 token standard and integrates with the OFT Omnichain Fungible Token standard created by LayerZero at launch. The OFT standard simplifies token transfers between different chains, efficiently resolving liquidity issues. The user-friendly operation is convenient for inexperienced users, fostering the development of cross-chain DeFi. The OFT standard does not package assets, ensuring that tokens transferred or used on each chain are equivalent, eliminating the risk of losing anchoring. Overall, they provide users with an efficient, user-friendly, secure, and reliable solution for cross-chain token transfers.

According to the official documentation, the ColorTrace value attribution algorithm can perform undisputed full-chain traceability for stablecoins. Contributors on USDV can earn rewards based on their contributions to the ecosystem. Similar to Bitcoin's UTXO Unspent Transaction Output structure, community contributors can tag USDV and earn rewards rights from their contributions. This mechanism allows for the advantages of a larger-scale community contributor ecosystem while maintaining USDV's circulation as an alternative token in various ecosystems.

Feature Three: Security and Audit of USDV

USDV's open-source smart contracts have been audited by third-party security companies, including: Zellic.io, which audited LayerZero, Aptos, Scroll, etc., Palladin, which audited Avalanche, and OtterSec, which audited Solana, Sui, etc., providing advanced security checks.

Feature Four: Verified USD Foundation's commitment to transparent and fair ecosystem distribution

USDV's Verified USD Foundation aims to cultivate a community of contributors, expand innovative usage scenarios with positive real-world impact through its value attribution algorithm, and establish a fair and transparent stablecoin ecosystem through a reasonable reward distribution mechanism. It integrates technology, resources, liquidity, community, and other resources to provide stablecoins with broader applications and sustainable growth.

Similar to the early stages of BTC mining, community contributors collectively compute to maintain network security and promote development. As the ecosystem expands, USDV will directly allocate rewards to growing contributors (including protocols, applications, and liquidity providers).

At the same time, USDV has extensive accessibility and cross-chain capabilities, enabling it to interact with Ethereum, BSC, Avalanche, Arbitrum, and Optimism from its initial release, with the potential to operate on over 40 L1 and L2 chains in the future. The Verified USD Foundation is also responsible for recruiting new community contributors, devising USDV's future roadmap and governance plans, such as CeFi, DeFi, payment solutions, fund management, cross-border remittances, etc.

USDV Keywords: Security, Stability, Transparency

In conclusion, USDV achieves basic asset security with STBT as its underlying asset, diversifying risks and resisting inflation, bringing the low-risk and stability advantages of traditional finance into the digital asset field. Simultaneously, it retains the fairness, transparency, immediacy, and efficiency of blockchain technology, providing traditional finance investors with a more liquid choice. This innovative economic model and community will develop a full-chain native stablecoin ecosystem of "Verified value on any chain."