Stablecoin issuer TrustToken is bringing its proof of reserves system for TrueUSD (TUSD) collateralization ranges on-chain. Including Chainlink to
Stablecoin issuer TrustToken is bringing its proof of reserves system for TrueUSD (TUSD) collateralization ranges on-chain. Including Chainlink to an present partnership with accounting agency Armanino makes it doable.
The transparency measure is supposed to offer extra certainty for decentralized finance (DeFi) merchants who usually depend on asset-backed stablecoins – even with no clear understanding of whether or not the belongings are totally backed.
Pulling from Armanino’s TrustExplorer API, the Chainlink integration makes the info accessible on-chain, which then lets app builders develop preventative measures towards fractional reserve banking or different potential purple flags.
“One of many issues that we expect will probably be speedy will most likely be on Aave – they’ll build-in threat circuit-breakers,” stated Noah Buxton, Armanino’s blockchain director. “They’ll have a look at if the token is collateralized – is it a steady stablecoin – after which have the ability to construct threat performance round that.”
One of many issues that lending protocol Compound has with itemizing stablecoins is making certain that stablecoin issuers are literally able to minting the cash and maintaining them correctly collateralized, stated TrustToken CEO Rafael Cosman.
TUSD is the seventh-largest stablecoin by market capitalization, in accordance with CoinGecko. In June the stablecoin was accepted as a collateral asset for producing dai on the Maker lending protocol.