1. About extreme overcollateralization.
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.
2. About complete autonomy.
- 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.
We are pleased to announce the launch of USSD v2, the new version for the Autonomous Secure Dollar.
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.
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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:
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Decentralized and Autonomous: No centralized authority can freeze or blacklist tokens, ensuring operational continuity and resistance to censorship or external pressures.
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Radical Overcollateralization: Utilizing crypto assets only, it maintains a collateral to capitalization ratio significantly higher than existing stablecoins, ensuring robustness against market volatility.
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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 holdersUSSD'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 holdersTo 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 ICEBreakerThe 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-b93df9f1ea68Liquidity pools for USSDLet's boost the liquidity and growth of our USSD community!
