Singapore, Singapore, 13th August, 2022, Chainwire
TUSD has been endorsed by CryptoQuant, a data analysis firm for cryptocurrencies, ranking in the top eight in the stablecoin efficacy report published July 21.
The efficacy report offered an in-depth analysis of eight significant stablecoins in the market (USDT, USDC, BUSD, DAI, FRAX, TUSD, USDP, and GUSD) from four dimensions: peg robustness, price premium, velocity, and accessibility.
In terms of peg robustness, TUSD ranks among the top stablecoins. This dimension shows how reliable a stablecoin is during an increase in supply, which occurs when users are redeeming their stablecoins. This is known as a redemption run or better known as a “bank-run.”
Robustness is crucial for financial products as it represents stability. Stablecoins with high peg robustness allow users to redeem their assets securely, without fear of a price shock.
Measuring a stablecoin’s peg requires two metrics: price deviation and redeemed supply flow. Stablecoins with lower price deviation and higher redeemed supply, have a higher chance of maintaining their stability. Results show that TUSD has one of the lowest levels of price deviation, marking higher peg robustness scores.
TUSD’s high robustness score is well-deserved. Available sources reveal that it is one of the most transparent stablecoins, fully collateralized by U.S. dollars and attested live on-chain. Also, TUSD is audited in real-time by Armanino, a leading U.S.-based accounting firm, to ensure a 100% collateral ratio.
(Different stablecoins’ peg robustness scores)
The price premium is used to analyze the historical prices of stablecoins to identify if a token has traded at a premium or a discount. The report indicates that TUSD ranks somewhere in the middle. A price premium allows stablecoin holders to profit from selling at a premium in
