TrueUSD Lending

There are several ways to earn a return on your TUSD, including lending them out to custodial providers or via a Defi lending protocol. We suggest using a Ledger Hardware Wallet to maintain complete control over your funds. Before delegating your tokens, ensure they are stored on your Ledger wallet and follow the instructions provided. 

Step 1: Access to the Aave lending app page.

Step 2: Click “Connect wallet” in the upper right corner. Select the Ledger option.

Step 3: Supply (i.e. lend) TUSD. This permits you to deposit your tokens into a smart contract in exchange for aTUSD tokens.

TrueUSD was launched by TrustToken on 5 March 2018 on Bittrex and quickly grew because of transparency. TUSD is fully backed 1:1 with USD held in escrow accounts for the benefit of TUSD token holders, it can be transferred to people anywhere in the world for $0.01, and can be redeemed for the underlying fiat USD after completing a KYC/AML check.

TrueUSD works with 3rd party accounting firms to provide monthly attestations to confirm the fiat reserves collateralizing each tokenized currency. From launch, Truecoin has worked with Cohen & Co., a top-50 US accounting firm, to verify that the USD backing TUSD are always held at a 1:1 ratio and that Truecoin has made no material changes to the ‘terms of service’ that protects users. Through a partnership with Armanino, a top-25 US accounting firm, TrueUSD holders are able to view a real-time dashboard of TrueUSD funds, advancing transparency from months to minutes. The real-time dashboard has been built independently by Armanino and will provide third-party confirmation, with TrueCoin as an exclusive client.

The lending yield on TUSD is generated from:

• Lending and Borrowing: On platforms such as AAVE, TUSD token holders can contribute their TUSD to liquidity pools, which can then be accessed by borrowers who provide collateral assets. These borrowers take out loans by borrowing against the collateral assets they have deposited. In exchange for the loan, borrowers pay an annual percentage rate (APR) to the token holders (i.e. lenders) who have added their DUSD to the liquidity pools.

TUSD is issued by TrustToken and is fully collateralized, meaning every TUSD is backed by one US dollar held in escrow by regulated financial institutions. Token Utilities:

Store of value: TUSD is used as a unit of measure for value exchanged on the TUSD network. Users can interact with it by sending it to others, buying and selling on exchanges or OTC markets, or using DeFi for lending and staking.

DeFi activities: Users can trade, stake or provide liquidity for TUSD on DeFi platforms on Ethereum, Tron, BSC for higher returns.

TUSD is minted whenever someone wires the fiat currency, USD, to TrustToken, either via an exchange or the TrustToken app. We recommend minting TUSD through the TrustToken app by following wiring instructions provided in the app. TUSD will be sent to your wallet address once funds are received.

Distinguish between Custodial and Non-Custodial Lending:

• Custodial lending refers to lending your crypto through a centralised entity such as Binance, Kraken, Coinbase
• Non-custodial lending means that you have sole control of your private keys, and therefore control and custody of your own assets

Do not fall for high APR %: When you lend your crypto, you will usually be quoted an APR for your investment. Some lending platforms may offer very high APRs as a way to attract investors, but these high APRs may be unrealistic and involve additional risk. Safe TUSD lending typically offers yields of less than 1%.

Stick to well-known DeFi protocols: Look for protocols that have liquid markets and choose protocols that have been audited by reputable auditors for added security, such as Aave v2.

We strive to make lending crypto as safe and transparent as possible. TUSD’s stability is ensured by its reserve of USD, a fiat currency, unlike other stablecoins which are backed by reserves consisting of non-fiat currencies. However, it’s still important to consider factors that may influence whether a particular lending option is appropriate for you.

• Smart contract risks: Defi platforms like AAVE, have inherent risks associated with smart contracts. These contracts can be exploited or hacked by a malicious actor
• Counterparty risks: If you use a centralized lending platform, you may be exposed to counterparty risk. This is the risk that the other party in the transaction may not fulfill their obligations and default on the contract.

Keep in mind that this is not a comprehensive list of all potential risks associated with lending.