Introduction to SUSD: World’s First Privacy Protection Stablecoin on SERO
Some introduction of SERO and POFID is needed before we speak of SUSD.
What is SERO?
SERO is the world’s only privacy protection blockchain network that utilizes Zero Knowledge Proof while supporting Turing complete smart contract. Aside from these two key features it also supports non homogeneous assets, allowing the issuance and processing of complex data structures required by real world applications. SERO mainnet went online on 18th July, 2019, its native token SERO is held by over 100k investors world wide, with a global community of over 50k users.
What is POFID?
POFID is a DeFi infrastructure developed on the SERO network, which provides liability/collateral management, asset management, custodian, and clearing services for a wide range of high level financial applications. Issuance of stablecoins is one of its key features. Any assets issued from POFID automatically enjoys anonymity offered by the base network of SERO, SUSD included.
In the terminology defined by POFID, SUSD is an AOC (Asset-on-Chain). It is collateralized by SERO tokens deposited and pledged in a type of collateral container called DMW (Decentralized Mortgage Warehouse, core smart contract of POFID). The fact its name contains USD simple comes the fact that the collateral itself has a liquid USDT trading pair on many crypto exchanges, so it is natural for this particular stablecoin to have a 1-for-1 value peg to USDT.
POFID has a sophisticated stability maintenance mechanism, which is fundamentally different than that of some the more popular ones, and likely to be more robust. Specifically speaking, SUSD is issued at a 1:1.8 USDT value ratio to the collateral — let’s call it the initial ratio. If the pledged SERO tokens’ value drops to cause the current ratio decreasing to 1.3, the maintenance threshold, an auction will be triggered. But the auction target is NOT the pledged asset itself, rather the shortage amount to restore to the initial ratio. Whoever wins the auction must supplement this shortage amount to make the current ratio back to initial level, and meanwhile he is rewarded the Control Right of the entire block of the original pledged asset. In other words, when price falls sharply no one is required to bid on the collateral itself — as naturally no one likes to catch a falling knife, but instead, the bidder spends the shortage amount as an option premium to control the entire pledged asset. If one were to bid on a falling knife, it’d be highly likely that the bid would discount the pledged asset, which would render the stablecoin to value less. But with a premium bid, the winner doesn’t need to touch the pledged asset at the current moment, yet he can make a risk-free profit when the pledge asset’s price rises later.
Having said that, more importantly is the usage of SUSD. Issuing a stablecoin is a wasteful exercise if no one uses it. Fortunately for SUSD, SERO has a vibrant DeFi ecosystem that needs a payment vehicle, and that’s why SUSD has its foundation in application demand. Currently, SERO’s Coral DEX and DeMall both use SUSD as payment settlement for crypto trading and real commerce. The latter is particularly important as this new model of decentralized e-commerce (what we call ChainMerce) is attracting merchants and consumers alike. The usage, and hence the issuance, of SUSD is expected to grow exponentially in the months to come. SUSD is exactly the Super Stable Token (SST) referred in the following DeMall illustration.
Official links
Official website : https://sero.cash
Tencent : https://v.qq.com/x/page/s0792e921ok.html
YouTube : https://youtu.be/UNG2boG49Io
Twitter : https://twitter.com/SEROdotCASH
Medium : https://medium.com/@SERO.CASH
Github : https://github.com/sero-cash
Reddit : https://www.reddit.com/user/SEROofficial
BitcoinTalk ANN : https://bitcointalk.org/index.php?topic=5123382.0
Linkedin :https://www.linkedin.com/company/sero-global-inc/
Facebook : https://www.facebook.com/SEROProtocol
Gitter Community : https://gitter.im/sero-cash/Lobby?utm_source=share-link&utm_medium=link&utm_campaign=share-link
SERO VS Zcash encryption speed comparison :https://www.youtube.com/watch?v=bc6yHTLSl5M
Telegram Community
Chinese group : https://t.me/SeroOfficialChs
English group : https://t.me/SeroOfficial
SERO Announcement : https://t.me/SEROannouncements
SERO Official Technical Support : https://t.me/SeroFans
