Threshold Network Launches thUSD, a Stablecoin Collateralized by tBTC
According to the official news, the privacy network Threshold Network announced that it would launch the US dollar stable currency thUSD based on tBTC. The stable currency uses the Liquidity protocol mechanism for reference, and uses tBTC (bridging Bitcoin to the derivative token generated by Ethereum through the cross-chain solution of Threshold Network) as the collateral to generate USD stable currency thUSD.
Threshold Network, a private network, will launch thUSD, a stable dollar based on tBTC
Analysis based on this information:
Threshold Network, a privacy network, has revealed its plan to launch its US dollar stablecoin, thUSD. The stablecoin would be based on tBTC and generated using the Liquidity Protocol mechanism for reference. tBTC, which is bridging Bitcoin to the Derivative Token generated by Ethereum via Threshold Network’s cross-chain solution, would serve as collateral for the stablecoin.
A stablecoin is a cryptocurrency tied to an asset like gold or fiat currencies, which aims to keep its value steady. Since cryptocurrencies are known for their price volatility, stablecoins were created as a hedge against market fluctuations. Stablecoins can be used for transactions like traditional currencies, but with the added advantage of being more stable.
Liquidity Protocol is an algorithmic market maker that has been used to create the thUSD stablecoin. The protocol allows thUSD to maintain its value relative to the US dollar, with a 1:1 ratio. The idea behind multiple stablecoins is that they can share liquidity pools and support cross-chain transactions, easing the burden on centralized exchanges.
Threshold Network’s thUSD is collateralized by tBTC, which makes it unique. tBTC is a decentralized Bitcoin-backed ERC-20 token that is pegged to the value of Bitcoin. By using tBTC as collateral, Threshold Network can maintain the stability of thUSD even when Bitcoin prices are fluctuating.
Threshold Network’s cross-chain solution has made it possible to bring the two blockchains together, allowing Bitcoin and Ethereum holders to access different DeFi applications. With $60 million worth of transactions recorded since its launch in 2020, the network is poised to become one of the top decentralized exchanges for Bitcoin and Ethereum holders.
In summary, Threshold Network has launched its US dollar stablecoin thUSD, which is collateralized by tBTC. The stablecoin is generated using the Liquidity Protocol mechanism and is pegged to the US dollar, allowing it to maintain its value even when the market is volatile. Threshold Network aims to bridge the gap between Bitcoin and Ethereum by creating a cross-chain solution that supports DeFi applications.
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