Topic: USSD (Autonomous Secure Dollar) - Unfreezable, Multi-Backed by Crypto Stablecoin - page 2. (Read 786 times)

We have seen overcollateralization stablecoin protocol but extreme overcollateralization is something new. Overcollateralization is a way that many stablecoin protocol uses to maintain its peg and stability but with a collateral to capitalization ratio of more than 10x what you are going to achieve? How this will get extra benefits to the protocol i do not understand. Other overcollateralization protocol maintain a standard capitalization ratio but i do not know if any protocol even has 2x. The projects commitment to autonomy will prevent any kind of 3rd party involvement of manipulating the protocol. Furthermore operate as a non profit organization and offer the code as open source gives the project transparency and trust.

But i have some concern that i need answer to:

1. The Sherlock team's audit is well recognize in the industry but could you elaborate on the scope and thoroughness of the audit?

2. How will you manage the risks associated with BGL's small capitalization and deflationary nature?

3. Will you elaborate the way of making governance decision how you are going to face the governance voting manipulation ?

4. In a competitive stablecoin market what strategy you are going to use for marketing? 

5. As a non profit entity how you are going to maintain the projects operational cost?

Hey everyone! Exciting news! 

Our open-source USSD smart contract is getting an audit from the Sherlock team.

The lead senior Watson is WATCHPUG.

We start this Friday, May 19th at 15:00 UTC.

Want to check it out? Head over to https://app.sherlock.xyz/audits/contests/82 for all the details. Let's get this party started!

Collateral of USSD Stable coin contains 4 crypto assets in Ethereum Mainnet that will ensure maximum decentralization possible nowadays:

Such cryptoassets as WBTC and WETH will make collateralization ratio possible x2-x5 times. But we include a radical element in the insurance capital, namely the BGL (Bitgesell) coin, which is deflationary and has a small capitalization (at the time of writing). It was included in the collateral to overcome collateral fluctuations in the first period of USSD adoption and to increase collateral upside in the long run. Therefore 10x+ collateral ratio will be reached.

• 1. USSD cannot be frozen on anyone’s address, banned or blacklisted – by code.
• 2. The collateral stays visible on the smart contract and could not be accessed by anyone, except the redeem/rebalance logic in the code.
• 3. Code is 100% open-source, immutable and audited by Hacken with 9.3 score
• 4. Collateral doesn’t include:
  - RWA tokens
  - short-term US treasures
  - cash in US banks
  - any cryptoassets that are directly connected to the financial insitutions.
• 5. USSD doesn’t have any intrinsic business tied with it, like borrowing/lending protocol, return on collateral investing. USSD is non-profit project.

USSD Stable coin aims to provide what the crypto community needs: freedom and safety.



Date of Deployment: 12.03.2024

- Immutable Contract: Upon deployment, the contract cannot be modified, implying the rules or mechanisms that guide the USSD mechanism cannot be meddled with.
- Audited by Hacken: For the purpose of trust and security, the smart contract has been audited by Hacken, a known entity performing audits in smart contracts.

The Autonomous Secure Dollar (USSD) represents a leap towards creating a stablecoin that is not only autonomous and immutable but also secure and overcollateralized, pegged closely to the US dollar without any ties to traditional financial systems or real-world assets.

As USSD v1, USSD v2 differentiates itself through its following features:

- Decentralized and Autonomous: No centralized authority can freeze or blacklist tokens, ensuring operational continuity and resistance to censorship or external pressures.
- Radical Overcollateralization: Utilizing crypto assets only, it maintains a collateral to capitalization ratio significantly higher than existing stablecoins, ensuring robustness against market volatility.
- Non-Profit: Operates autonomously without any commercial entity behind it, focusing on long-term stability and security rather than profit generation.

The architecture of USSD v2 comprises three critical components:



1. Collateral: A diverse and robust structure utilizing trusted crypto assets (BTC, ETH) and a stablecoin (USDT) to ensure liquidity and stability, managed through an immutable smart contract.

2. Insurance Capital: A supplementary collateral pool funded by insurance providers in exchange for ICT tokens, designed to support the main collateral in events of undercollateralization.
    - USSD v2's minting and redeeming mechanisms are straightforward yet carefully designed to adapt to market conditions and ensure the stablecoin's value remains pegged to the USD. It incorporates strategies to manage the collateral actively according to the crypto market's phases, focusing on asset accumulation during favorable conditions and stability during downturns.

3. Reward Staking Mechanism: Offers interest earnings to USSD and ICT token holders, incentivizing participation and support for the stability of the ecosystem.

Operations

• Minting of stable coins when the stable coin balance is not more than 15% of the total or during some phases of the Bitcoin halving cycle. For BTC and ETH, minting is also allowed when a stable coin balance is at least 5%, and during some growth phases of the Bitcoin halving cycle.
• USSD v2's minting and redeeming mechanisms are straightforward yet carefully designed to adapt to market conditions and ensure the stablecoin's value remains pegged to the USD. It incorporates strategies to manage the collateral actively according to the crypto market's phases, focusing on asset accumulation during favorable conditions and stability during downturns.
• Prioritized order involved in redeeming where in the case of redemption, the stable coins in the collateral come at the head, followed by wBTC and wETH based on market prices provided by ChainLink.
• If the collateralization falls under 90%, an insurance mechanism is triggered, so the funds are gradually moving to the main collateral in order to bring stability back.
• USSD v2 introduces risk management mechanisms to protect against centralization risks associated with wrapped tokens and to provide a robust response to potential "bank run" scenarios through the innovative "proportional redeem" feature. This mechanism ensures fair and equitable asset redemption, preserving the system's integrity even during market stresses.

Updated other stable coin comparable table

Feature	USDT	USDC	USDP	DAI	USSD
Transparency	Auditor's report	Paper proof	Paper proof	Code	Code
Source of Collateral	US Treasuries, Cash	US Treasuries, Cash	US Treasuries, Cash	Crypto, RWA, USDC	Crypto
Crypto Collateral Ratio	~2%	0%	0%	~150%	~500%+
Full Collateral Ratio	Claimed 100%	Claimed 100%	Claimed 100%	~278%	~500%+
Regulated Status	Hong Kong entity	US entity	Several entities	US entity	No entity
Token Management Centralization	Yes	Yes	Yes	No	No
Project Management	Centralized	Centralized	Centralized	DAO	Autonomous
Payment for Services	No	No	No	Yes	No
Business Model	Interest from Treasuries	Interest from Treasuries	Interest from Treasuries	Partnership with RWA	Non-profit

Risk-reward for ICT token holders

USSD's main focus is on security. Those who value security can play a role in providing it and, in return, get rewarded for their contribution.

The reward system for ICT token holders activates automatically when the Collateral Ratio reaches a level of 1.05. These rewards are paid as interest to ICT holders. To claim these interests, ICT holders need to stake their ICT in a smart contract.

The interest is calculated at a rate of 4.2% per year based on the Collateral market value. It is paid through the creation of new USSD tokens every 24 hours, at a daily rate of approximately 0.011507% (4.2%/365). The distribution of interests is based on the proportion of staking shares held by ICT holders.

For example, if a total of 500 ICT were minted, and 400 were staked for claiming interests, with David staking 100 ICT, his interest share would be 25% (100/400). ICT holders can claim their interests by using a withdrawal function.

Anti-inflation mechanism for USSD holders

To protect funds from centralization issues and inflation, an anti-inflation mechanism has been introduced in USSD. USSD users can stake their USSD tokens to receive a share of the interests.

Similar to the reward system, the interest for USSD holders will be automatically activated when the Collateral Ratio reaches the 1.05 level. These interests will be paid to USSD holders and can be claimed by staking USSD in the smart contract.

The interest is calculated as 1.8% annually based on the Collateral market value. It is paid through the minting of new USSD every 24 hours, using a simple percentage of 1.8%/365 (or approximately ~0.0049315% per day). The interests will be distributed according to the staking shares of USSD.

For example, if a total of 3,500,000 USSD were minted, with 500,000 were staked for claiming interests, and David had staked 100,000 USSD, his interest share would be 20% (100,000/500,000). If the collateral ratio of the main collateral is 150%, overall interests income will be 94,500 USSD (3,500,000 * 150% * 1,8%). David's interests share will be 18 900 USSD (94,500 * 20%) or 18.9% interests Annual Percentage Yield (APY) would (18,900/100,000).

Local currency stablecoin franchise. Autonomous ICEBreaker

The Autonomous Community has found a marketing fund dedicated to exploring marketing strategies for stablecoins. We plan to share the successful outcomes with the project's founders.

We're in search of technology entrepreneurs to pioneer a local currency stablecoin project, backed by secure and thoroughly audited open-source code. For example, autonomous South Korean won or Brazilian real.

Earnings for the Founder of the Autonomous Stablecoin: The founder will receive 1% of the total value of the stablecoin's collateral yearly. For instance, with a collateralization ratio of 3:1 and a total balance of local stablecoin of $100 million, the annual passive income could reach $3 million.

Instruction how to mint and redeem USSD.

Please test it with a small amount and share your feedback. Participants who mint at least 1 USSD and share their experience will receive 3 USSD as a reward. Post transaction details here or send them to me at @davidlee256 in telegram.

For instructions, visit: https://medium.com/@davidleechaum/instruction-how-to-mint-ussd-and-get-back-collateral-b93df9f1ea68

Liquidity pools for USSD

Let's boost the liquidity and growth of our USSD community!  

• Uniswap pool
• Curve pool

Autonomous Secure Dollar (USSD) – is the project aimed to create a fully autonomous, decentralized and radically overcollateralized stablecoin (Arbitrum) pegged to USD.



Diversify your centrally controlled stables for unstoppable USSD on DEXs. While you still can

• Exchange on Uniswap
• Exchange on Curve

The stablecoin architecture ensures the following features:

1. Extremely overcollateralized. USSD stablecoin is fully backed by decentralized crypto assets. Furthermore, the collateral to capitalization ratio of the USSD stable coin is aimed to be more then 10x.

2. Autonomous.

• the USSD stablecoin user can’t be frozen, blacklisted or banned by anyone;
• USSD collateral is not connected with financial institutions and physical world;
• simple architecture, smart-contract based – no reliance on any operating business, thus independent from any revenue stream risk (such as fees, lending/borrowing interest, etc.).

Comparison of USSD with other stablecoins



Being an autonomous stable coin, USSD enables everyone to participate actively, from staking USSD and ICT to earn interests, to minting new coins and bolstering its liquidity.

Project links:

• Whitepaper
• Twitter
• Medium
• Website - ussd.ai
• Github
• Email: [email protected]
• Telegram channel
• Telegram community chat
• Discord
• ERC20 wallet for donations: 0x2F59a0C2ec3403295D89127dc7335326fbaA0C26