The DigitalDollar is the world’s first stablecoin that’s verifiable 24/7 on-chain, fully cash-backed, and minted directly from users’ deposits.
USD funds go from the user’s personal IBAN, to the treasury account, which gets broadcasted to the blockchain through an oracle.
The smart contract doesn’t allow more DUSD to be created than there are verifiable reserves in the treasury account on a 1:1 basis.
You’ll thus be able to verify the DUSD supply against the public treasury account, on-chain, at all times.
When ‘redeeming’, the DUSD gets burned on-chain, and the treasury account credits the user’s IBAN with real USD again.
The fiat reserves themselves are held in Client Safeguarded Accounts, insured against theft and fraud.
Essentially creating the world’s most secure stablecoin, and the fastest and cheapest on/off ramp between traditional finance and DeFi.
Watch our 1 minute explainer video.
There’s also no risk of DUSD ever losing its peg.
For every dollar you mint, you will always get 1 DUSD.
For every DUSD you burn, you will always get 1 dollar, in minutes and super-cheap.
So that means if you’re holding DUSD you won’t even have to worry about 3rd party market rates, as we'll always redeem 1:1 in-app.
But, it also means that people can take advantage of any price differences. Because we are so fast, cheap and mint/redeem 1:1, it effectively encourages people to arbitrage away any differences in price that may happen on third party markets (such as SushiSwap).
In the future we're planning a digital stablecoin for the Euro, Swiss Franc and British Pound - and potentially up to 34 different currencies.
Read our in-depth Medium article.