What is CUSD? The backbone of the Viction ecosystem

What is CUSD? 

CUSD is a stablecoin on the Viction blockchain, issued by Stably and backed by Ninety Eight. Its value is tied to the USD at a 1:1 ratio, meaning that 1 CUSD is equivalent to 1 USD. The purpose of CUSD is to provide liquidity and stability in the highly volatile cryptocurrency market. 

CUSD is developed based on the VRC25 standard provided by the Viction network, allowing users to transact without gas fees and experience seamless usage with a Zero Gas Fee mechanism.

Some key information about CUSD includes:

• Type of stablecoin: Fiat-backed Stablecoin.
• Conversion ratio with fiat (USD): 1:1.
• Launch time: December 2023.
• Scope of operation: Global (except the US).
• Issuer: Stably.
• Sponsor: Ninety Eight.
• Smart contract auditing unit: Verichains.
• Stablecoin endorser: The Network Firm.
• Network: Viction and will expand further in the future.

Versions of CUSD

As of December 15, 2023, CUSD has been developed to its second version, including Coin98 Dollar (CUSD) and CUSD (CUSD).

Coin98 Dollar (CUSD): Ceased Operations

The initial version of CUSD, known as Coin98 Dollar (CUSD), was launched on September 19, 2022. 

• Coin98 Dollar is a decentralized stablecoin issued by Ninety Eight. 
• CUSD is fully backed by three other stablecoins in the market, including USDT, BUSD, and USDC. 
• This mechanism enables users to directly convert CUSD to the aforementioned three stablecoins at a 1:1 ratio.

Learn more: Why did Coin98 develop CUSD?

However, on November 29, 2023, Binance announced the discontinuation of support for the BUSD stablecoin and its related products, leading to the halt of development for the Coin98 Dollar version by the Ninety Eight team. Ninety Eight have since started working on a new version of CUSD.

CUSD (CUSD): An upgraded version

The second version of CUSD is CUSD (CUSD), released on December 18, 2023. 

• CUSD is a centralized stablecoin issued by Stably and backed by Ninety Eight. 
• CUSD is fully collateralized by the US Dollar (USD). 
• CUSD’s mechanism allows users to directly convert CUSD to USD at a 1:1 ratio. 

This version of CUSD continues to uphold the value of the previous version, while integrating new mechanisms and improvements to address fragmented liquidity issues and strengthen the cross-chain ecosystem.

Important announcement: Redeem CUSD before January 15, 2024 & Ready for new CUSD version

On November 29, 2023, the Binance Exchange announced the official discontinuation of support for products related to the BUSD stablecoin starting from December 15, 2023. Additionally, users are encouraged to withdraw or convert BUSD assets into other assets on the Binance platform before December 15, 2023.

BUSD is one of the stablecoins used as collateral for CUSD according to the BEP-20 standard. As a result, the Ninety Eight team also announced the discontinuation of the current version of CUSD, allowing for the free redemption of CUSD. They are currently in the process of developing an improved version of CUSD with more features and utilities. This is to strengthen the development of the Ninety Eight ecosystem and meet the increasing needs of the user community.

Moreover, users holding CUSD are allowed to redeem CUSD for free until January 15, 2024. This means:

• Users can convert CUSD on the Ethereum, BNB Chain, and Solana chains to equivalent collateral assets without incurring fees from the CUSD protocol. 
• Users will still receive an amount of collateral asset value equivalent to CUSD at a 1:1 ratio.

It is important to note that:

• For CUSD on the BNB Chain, users need to redeem CUSD to BUSD and convert BUSD to other assets on Binance before December 15, 2023.
• For CUSD on Ethereum and Solana, users can redeem CUSD to USDC before January 15, 2024.

Redeem CUSD on the Coin98 Dollar platform at [link].

Mechanism of the CUSD stablecoin

The stablecoin CUSD is natively issued on the Viction network by Stably and adheres to the Financial Crimes Enforcement Network's (FinCEN) cryptocurrency conversion guidelines (FIN-2019-G001). This includes adhering to the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) regulations and the Office of Foreign Assets Control (OFAC) sanctions.

Users can mint/redeem CUSD at a 1:1 ratio with USD or USDC, provided they have completed KYC verification on Stably.

The collateral assets of CUSD are held in the form of bank deposits, money market instruments, and the USDC stablecoin. Specifically:

• Cash and cash equivalents account for 90%, including bank deposits, short-term US Treasury bonds, and money market instruments.
• USDC accounts for 10%, facilitating the minting and redemption of CUSD through USDC.

These assets are held and monitored by a reputable trustee designated by the system to ensure the interests of CUSD owners who have completed KYC.

Additionally, Stably collaborates with The Network Firm to regularly conduct quarterly audits and verify that all circulating CUSD tokens are consistently backed by collateral assets at a 1:1 ratio. The account statements with the held collateral assets will also be disclosed monthly.

This is to ensure transparency for CUSD tokens, as the trustee and the verifier are two separate and independent entities.

*The Network Firm is an organization providing stablecoin verification services established since 2016.

The prominent of CUSD

Fully Collateralized & Audited

CUSD is backed by highly liquid assets equivalent to the US dollar, including bank deposits, money market instruments, and USDC, all of which are held by a trusted custodian. 

Additionally, verification and auditing are also regularly conducted to confirm the value of CUSD's collateral assets, ensuring that 1 CUSD is always pegged to 1 USD. This minimizes the risk of losing the peg for CUSD and safeguards user assets.

CUSD guarantees a 1:1 conversion ratio

CUSD enables users to seamlessly convert CUSD tokens to USD or USDC. This characteristic ensures stability and allows for seamless transitions between cryptocurrency assets and fiat currency. 

Additionally, due to its stability, CUSD can serve as a secure hedge asset during periods of high volatility in the crypto market, minimizing asset losses for users.

Almost Fee-Free

CUSD is developed based on the VRC25 token standard on the Viction network, thus benefiting from the Zero Gas Fee feature. This allows users to conduct transactions, such as sending, minting, and converting CUSD, with nearly zero cost.

Compared to high-fee and time-consuming transactions in traditional banking systems, transactions between cryptocurrency wallets can be completed within seconds. Combined with the minimal fees provided by VRC25, this makes CUSD an efficient payment solution for individuals seeking convenience and cost-effectiveness in their transactions.

Cross-chain interaction and global accessibility

Although initially native to the Viction network, CUSD will continue to expand to other chains in the future which supports Ninety Eight's cross-chain vision.

Through CUSD, users in any market, whether Web2, Web2.5, or Web3, can easily switch between fiat and stablecoin at any time, simplifying participation in the cryptocurrency market and cross-chain ecosystem.

At a deeper aspect, CUSD helps eliminate barriers to cross-border payments, such as complex processes, long processing times, and high costs, enabling fast and efficient transactions between countries and different blockchain networks.

CUSD: The backbone of the Viction ecosystem 

The stablecoin CUSD serves as the backbone of the entire Viction ecosystem, supporting current projects and laying the groundwork for future innovations. 

The stable value of CUSD, pegged to the USD, provides convenience for users by allowing easy conversion between fiat and cryptocurrency. This provides access to the Viction realm, with potential opportunities in the era of Web3 innovation. Additionally, it helps attract funds from traditional systems into the Viction ecosystem and the broader crypto market. 

CUSD is integrated into Viction's products to provide a seamless experience for users interacting with the ecosystem. As the Viction ecosystem grows and expands with more products, CUSD will act as a bridge to facilitate the circulation of funds within the ecosystem. It will also attract new funds from users on other chains, thanks to its cross-chain interaction capability.

Finally, CUSD will become a reliable tool, providing users with stability and sustainable liquidity in the rapidly changing DeFi sector. As the demand for stablecoins in the market continues to increase, CUSD will gain more value, benefiting both users and investors.