A fully-backed, decentralized stablecoin called $CUSD is being launched by Coin98 Labs, a Southeast Asia-based decentralized finance (DeFi) platform. As a fully collateralized stablecoin, CUSD aspires to meet the need for inter-chain liquidity in DeFi by becoming a universal medium of exchange.
According to the official announcement, CUSD will be the default currency for use with all Coin98 Finance-developed products. With time, CUSD is expected to steadily increase its presence in different DeFi ecosystems in the multi-chain environment.
Fully Collateralized
For each CUSD obtained, $1 worth of collateral must be deposited into the CUSD Reserve smart contract. Initially, $1 worth of fiat-backed stablecoins, such as BUSD (on BNB Chain) or USDC (Ethereum and Solana), will be required as collateral in order to convert to 1 CUSD.
As the reserve stablecoin has already been collateralized, every CUSD can be redeemed for it at a rate of 1:1, which is the primary mechanism allowing CUSD to establish stability initially. While there will be no price associated with minting new $CUSD, there will be a 0.5% fee applied to all redemption transactions.
The announcement also stated that CUSD is fully backed by all supported stablecoin assets transferred to the CUSD Reserve smart contract. All underlying assets are kept in the contract so that all users can redeem them at any moment.
The stablecoin will initially be capped at a total of $50 million in market cap.
Secure and Multi-Chain Future
The developer team also emphasized that the project’s core purpose is creating a multi-chain stablecoin. As such, the announcement adds that CUSD will be deployed on as many chains as possible, beginning with Ethereum, BNB Chain, and Solana.
Furthermore, all CUSD contracts are reportedly audited by “highly trusted auditors”, and the audit findings will be made public, per the developers. However, no information was revealed regarding the audit firms. Besides developing a stablecoin, the project recently partnered with Opera Crypto Browser to improve Web3 accessibility. Opera’s users can now access multichain NFTs, DEXs, cross-chain bridges, and asset swaps, as well as stake and lend their cryptocurrency portfolios.
