Verified USD (USDV) is a stablecoin announced by the Verified USD Foundation. It is community-driven and fully backed by tokenized US Treasury Bills (T-bills), offering a stable value with real-time verification through proof-of-reserve. USDV is pegged 1:1 with the US Dollar and is backed by STBT, which includes cash, overnight repo, and short-term treasuries. Operating under the ERC-20 standard, USDV is an omnichain fungible token integrated with LayerZero’s Omnichain Fungible Token (OFT) Standard, making it available on multiple blockchain networks like Ethereum, BSC, Avalanche, Arbitrum, and Optimism.
Several factors influence the price of USDV. As a stablecoin, its value is designed to be stable and pegged to the US Dollar. The foundation behind USDV aims to create a sustainable and progressive stablecoin ecosystem, employing the ColorTrace algorithm developed by LayerZero for fair and transparent reward distribution among verified minters. This novel approach to value attribution within the stablecoin ecosystem is likely to impact its price and investor sentiment. The underlying reserve asset for USDV, provided by Matrixport’s Short-term Treasury Bill Token (STBT), offers real-time verification via on-chain Proof-of-Reserves, ensuring the stability and reliability of USDV. This transparency and security audit of its smart contracts can also influence investor trust and, consequently, its price. Additionally, the interoperability of USDV across various blockchain networks, facilitated by LayerZero’s Omnichain Fungible Tokens (OFT) Standard, could affect its accessibility and usage, further influencing its price and market perception.
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