Markets News Report
April 01, 2024

Threshold Network Launches thUSD Stablecoin Backed by Bitcoin and Ethereum

In Brief

Threshold Network launched thUSD, a USD-pegged decentralized stablecoin supported by the Bitcoin and Ethereum blockchains.

Threshold Network Launches thUSD Stablecoin Backed by Bitcoin and Ethereum

Threshold Network (T) announced the release of Threshold USD (thUSD), a USD-pegged decentralized stablecoin supported by the Bitcoin (BTC) and Ethereum (ETH) blockchains.

The borrowing system of thUSD presents a distinctive opportunity for users to obtain loans using their BTC and ETH holdings without worrying about continual interest charges. Rather, it imposes a single loan origination fee of 0.5%, rendering it a highly economical choice for users aiming to utilize their digital assets without resorting to liquidation.

Furthermore, the thUSD stablecoin stores all its collateral directly on the Bitcoin and Ethereum blockchains, ensuring transparency and real-time verification of its backing to eliminate the opacity often associated with off-chain reserves, providing users and stakeholders with clear visibility into thUSD’s collateral at all times.

Utilizing the considerable liquidity of the cryptocurrencies mentioned above, thUSD adopts a multi-collateral strategy. With a minimum collateral ratio of 110%, it ensures stability and reliability by leveraging the security and value of Bitcoin and Ethereum. This approach strengthens thUSD’s role as a stable medium of exchange, consequently enhancing the broader utility of Bitcoin.

Additionally, thUSD operates as a modified fork of the Liquity Protocol, focusing on achieving self-sustainability via the PCV (Protocol Controlled Value) framework. Unlike the Liquity Protocol, Threshold USD does not utilize an equivalent token to LQTY. Instead, all earnings are directed toward the PCV. The protocol’s bootstrapping is facilitated through an Initial Protocol Loan, eliminating the necessity for a token.

The presence of the PCV guarantees a predictable path and sustainable future for the protocol. Instead of depending on user deposits, the stability pool receives direct funding from the PCV. As a result, no expenditures are allocated to rewards for passive LQTY stakers, enabling these funds to be reinvested into the stability pool. With the expansion of the protocol and the generation of fees, the stability pool will continue to receive ongoing replenishment. 

Threshold Network Propels tBTC Bridge Development Amid 27% a Surge In Native Token Value

Threshold Network offers a range of threshold cryptography services, promoting user autonomy on the blockchain. Among its key offerings is tBTC, introduced in 2023 as the inaugural fully decentralized bridge connecting Ethereum and Bitcoin. tBTC has been operational for almost 3.5 years, during which it has successfully facilitated the bridging of over 2,500 BTC at its peak. It has served users across multiple platforms, including Solana, Arbitrum, Optimism, Polygon, and Ethereum, establishing itself as one of the most reliable bridges available in the blockchain ecosystem.

Recently, the native token of Threshold Network has witnessed a significant uptick, climbing over 27% in the past seven days and trading close to 5 cents as of the writing time, per the latest CoinMarketCap data.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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