Learn about TrueAUD Staking
Can I stake TUAD?
TAUD is not a token that can be typically staked like some PoS cryptocurrencies. TrueAUD is a stablecoin pegged to the value of the Australain dollar, and its primary purpose is to provide stability and liquidity in the cryptocurrency market. However, there are platforms that allow users to earn rewards or interest by depositing TAUD. Here are some potential ways to earn yield on TAUD:
Custodial Staking: Custodial services offer staking pools for TAUD where users can contribute their token holdings. While this isn't technically staking in the traditional sense, it allows TAUD holders to earn rewards. This approach allows TAUD holders to earn rewards without a standard staking mechanism.
Provide Liquidity: One of the ways to earn rewards with TAUD tokens is by providing liquidity on decentralized exchanges. When users provide liquidity, they earn a share of the trading fees generated by the pool. This is known as liquidity mining or liquidity provision.
How are the rewards generated?
The potential earnings from staking or providing liquidity with TAUD tokens can vary based on several factors, including the amount of TAUD deposited, the duration of the staking period, the prevailing market conditions, and the specific yield mechanism or platform used.
Custodial Staking: Centralized third-party providers mostly utilize strategies where assets from each plan and type are consolidated and allocated for yield in various on-chain opportunities. Some of the avenues for yield generation are mining, staking, liquid staking, proprietary market-neutral algorithmic trading, and collateralized on-platform lending.
Provide Liquidity: Users can supply TAUD tokens in a liquidity pool and earn a percentage of the fees paid by DEX users. The rewards are influenced by the size of the particular liquidity pool, the share of that pool, and popularity among users.
What are the risks to staking/LP TAUD?
Smart Contract Risk: Supplying TAUD on DeFi platforms involves interacting with smart contracts, which are susceptible to bugs and vulnerabilities that could be exploited by malicious actors, leading to the potential loss of funds.
Platform Risk: DeFi platforms are targets for hackers, and a successful attack could result in a significant loss of staked assets. Additionally, technical issues, operational failures, or platform downtime can affect access to funds and the ability to earn rewards.
Counterparty Risk: Ensure the platform you choose is reputable and secure. There is a custodial risk associated with depositing into a custodial provider.
What is Archblock, a TrueAUD issuer?
Archblock, previously TrustToken, the issuer of TAUD, is a blockchain-based company dedicated to creating stable, trustworthy digital assets. Founded in 2017, Archblock provides transparent and secure stablecoins that are fully backed by real-world assets. Archblock ensures the stability and trustworthiness of TAUD by maintaining Australian dollar reserves in escrow accounts managed by trusted third-party institutions and conducting regular attestations by independent accounting firms.
TrueAUD is based on similar legal and technical standards to its dollar-pegged sibling TrueUSD. The firm pledged it holds collateralized funds in a third-party escrow account and provides regular attestations of the AUD backing by third-party accounting firm Cohen & Co.
How was TrueAUD launched?
TrustToken is backed by Andreessen Horowitz’s cryptocurrency fund A16z Crypto, having raised $20 million in a strategic token sale last June. The firm has adopted the mission to act as a “bridge between blockchains and $256 trillion worth of real-world assets.”
