Coin98 DollarPrice

(CUSD)

CUSD is a fully-backed stablecoin pegged 1:1 to the US Dollar, operating as a core component of the Ninety Eight ecosystem. Its primary purpose is to address fragmented liquidity in a multi-chain environment. By acting as a universal unit of account, CUSD enables users to transfer value across different blockchains without the need for constant swaps between various stablecoin versions. This creates a streamlined experience for users interacting with decentralized applications and digital wallets.

Having a native stablecoin allows the ecosystem to minimize reliance on external protocols and their specific limitations. This autonomy facilitates the creation of specialized features, such as gasless transactions on the Viction network. Additionally, a native asset allows the ecosystem to capture more value for its community and C98 token holders. It ensures the infrastructure can adapt quickly to new technological requirements without waiting for third-party stablecoin providers to implement changes.

CUSD is not an algorithmic stablecoin. Unlike assets that rely on volatile token minting and burning, CUSD is fully collateralized. Every unit of CUSD in circulation is backed by an equivalent value of high-quality assets, including fiat reserves or established stablecoins held by regulated custodians. This provides a more robust security model compared to algorithmic tokens, ensuring that the 1:1 peg is supported by tangible reserves rather than market speculation.

The stability of CUSD is maintained through a "Mint and Redeem" arbitrage mechanism. If the market price of CUSD drops below $1, users can buy it at a discount and redeem it for $1 worth of collateral from the reserve, which reduces the circulating supply and restores the peg. If the price rises above $1, users are incentivized to mint new CUSD at cost and sell it on the market, increasing supply and bringing the price back to equilibrium.

The initial version of CUSD was decentralized and backed by various stablecoins. Following changes in the stablecoin landscape, the project transitioned to a newer version in partnership with regulated service providers. Users can now obtain CUSD through professional minting portals after completing necessary verification or trade it freely on supported trading platforms like LBank. This transition was designed to ensure long-term sustainability and compliance with evolving industry standards.

On the Viction blockchain, CUSD utilizes the VRC25 standard to offer a "Zero Gas" experience. This innovative feature allows users to send and receive CUSD without having to hold the network's native token to pay for transaction fees. This significantly reduces friction for users and makes CUSD an ideal choice for high-frequency transactions and payments. This technical advantage simplifies the user experience across the entire ecosystem and lowers the barrier to entry for new participants.