Announcing Threshold USD (thUSD) – Real (stable) Money, Backed by Bitcoin and ETH
bitcoin Launch

Announcing Threshold USD (thUSD) – Real (stable) Money, Backed by Bitcoin and ETH

Threshold Network
Threshold Network

Threshold Network is thrilled to announce the launch of Threshold USD (thUSD), a decentralized stablecoin soft-pegged to the U.S. dollar and backed exclusively by the most pristine collateral available today—Bitcoin and Ether. This launch marks a significant milestone in decentralized finance (DeFi), offering users a novel way to use their Bitcoin and Ethereum holdings without selling.

Why a Bitcoin-Backed Stablecoin Matters:

DeFi is revolutionizing our perspective on money, with Bitcoin leading this movement. However, until recently, Bitcoin couldn’t be deployed within DeFi without trusting and relying on centralized intermediaries. The launch of the second generation of tBTC on the Threshold Network marked a pivotal step forward, unlocking fresh possibilities for Bitcoin holders.

“In an era where DeFi is reshaping our financial landscape, thUSD stands out by integrating Bitcoin into DeFi without compromise on decentralization,” said MrsThreshold, Marketing Lead of Threshold DAO. “thUSD is not just a stablecoin; it’s a link connecting the unparalleled security and potential of Bitcoin and Ethereum with the fluidity and accessibility of DeFi markets.”

Unique Selling Points of Threshold USD

Interest-Free Loans with Minimal Fees: One of the standout features of thUSD is its approach to borrowing. Users can take out loans against their Bitcoin and Ether without the burden of ongoing interest payments. The platform charges only a one-time loan origination fee of 0.5%, making it an exceptionally cost-effective, long-term option for users looking to leverage their digital assets without selling.

Unparalleled Decentralization and Transparency: thUSD sets a new standard in the stablecoin market through its commitment to decentralization and transparency. Distinctively, thUSD maintains all its collateral natively on the respective blockchains of Bitcoin and Ether, unlike other stablecoins whose reserves might be opaque and often stored off-chain. This innovative approach not only ensures that thUSD’s backing remains fully transparent but also allows users and stakeholders to verify the collateral on-chain in real-time. Such a level of transparency, ensuring assets are verifiably held within their native ecosystems, is exceedingly rare in the financial sector and sets thUSD apart as a leader in trust and verification. 

Bitcoin, Everywhere: Threshold USD is one of the first stablecoins in the market that is backed by both Bitcoin and Ether. Users can benefit from the flexibility of backing their thUSD with either Bitcoin, Ether, or a blend of both, according to their preference. This multi-collateral approach taps into the vast liquidity of the two most significant cryptocurrencies by market capitalization. By leveraging the security and value of Bitcoin and Ether, and ensuring that thUSD is over-collateralized at a minimum 110% collateral ratio, thUSD provides a stable, reliable medium of exchange that continues to bring Bitcoin more utility. 

Highlights of Threshold USD

Stability and Security: thUSD is anchored to the value of one US Dollar, providing a stable harbor against the inherent volatility of the crypto market. Security audits by Cantina and Mixbytes, and a comprehensive bug bounty program with ImmuneFi ensure thUSD remains secure and resilient through ongoing scrutiny of the protocol.

Transparency and Accessibility: With real-time verifiable reserves and a permissionless structure, thUSD ensures complete transparency and open access for all users. Its open-source nature invites scrutiny and collaboration, reinforcing the community’s trust. This transparency eradicates the dependence on audit reports of off-chain assets from centralized entities. 

Innovative Protocol Features: Operating on a self-sustaining Protocol Controlled Value model, thUSD introduces a stability pool replenished without external inputs, emphasizing efficiency and longevity. The multi-collateral approach not only amplifies scalability but also invites future diversification through Threshold governance. B.Protocol provides a liquidation backstop, reinforcing the protocol's solvency, even under intense market conditions.

About Threshold DAO:

Threshold DAO is a pioneering entity in Web3, focusing on delivering innovative and secure threshold cryptography solutions. We are committed to fostering a transparent and inclusive financial ecosystem, emphasizing the decentralized and permissionless nature of Threshold Network’s suite of products. With contributors from around the globe, we are well positioned to continue to disrupt the status quo. Start leveraging your sidelined BTC with thUSD today

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