Comparison between USD Freedom(USDF) issued by Freedom and TerraUSD (UST*)
UST* – not backed by fiat-equivalent risk-free assets with no leverage cap
USDF – 100% fiat collateralized. Future incarnations of USDF not 100% backed by fiat will impose a strict leverage cap to ensure security and stability.
100% fiat collateralized. Fiat will impose a strict leverage cap to ensure security and stability of USDF holder although the market is highly volatile.
Peg maintained via
UST* – Algorithmic Model from Day 1 using Constant Sum Market Maker (CSMM)
USDF – Collateralization Evolution, starting from phase 1: 100% Fiat-collateralization following with >100% Crypto-collateralization and delayed partial swap Constant Product Market Maker (CPMM).
The gradual evolution of USDF will allow for the build-up of goodwill amongst market participants who would come to accept USDF as a prudently managed stablecoin.
UST* – supported by the volatile value of Terra’s Proof-of-Stake blockchain rather than utility outside the Terra ecosystem.
USDF – supported by the exogenous actual world revenue of the Bitazza ecosystem and use cases, including Freedom Card and Freedom Wallet.
Utility beyond the platform through products of the Bitazza ecosystem will help increase USDF value sustainably.
Bitazzans can check out further information of USDF on Bitazza Global Whitepaper 2.0 https://bit.ly/FBTH_EN_WHITEPAPER2
*Comparison is with UST* information prior to the LUNA-UST collapse. Existing UST has been renamed TerraClassicUSD (USTC)
More from Whitepaper 2.0
Are stablecoins STABLE as you think?
Are stablecoins STABLE as you think? . While stablecoins were invented to be pegged to a dollar despite the market volatility, according …
Bitazza Global whitepaper 2.0 HIGHLIGHT!
Let us help you digest Bitazza Global Whitepaper 2.0 with the summary of highlight key topics all-in-one page! Then feel free …
How USD Freedom (USDF) was issued by Freedom?
Get to know more about how USD Freedom (USDF) issued by Freedom is minted in the initial stages has been minted …