[HUSD] MIP6 Collateral Onboarding Application

[Claude]

This is a MIP6 Proposal for the addition of Stable Universal’s dollar-backed stablecoin HUSD to MCD.

HUSD is a standard ERC-20 token with approximately $114 million market cap as of July 1st 2020.

1. Who is the interested party for this collateral application?

Stable Universal Limited, the issuer of the stablecoin HUSD (“HUSD”).

2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.

HUSD token is a USD-backed ERC-20 stablecoin issued by FinTech company Stable Universal. The HUSD token is pegged 1:1 to the U.S. Dollar, and each U.S. dollar collaterized for HUSD is held in a U.S. trust company (Paxos Trust). To ensure the 1:1 backing is maintained, monthly attestations of HUSD are conducted by an independent US audit firm, and the attestation reports are available on www.stcoins.com for public viewing.

3. Provide a brief history of the project.

July 2019: Stable Universal announced the launch of a new ERC-20 stablecoin: HUSD Token

July 2019: Huobi Global announced the listing of the HUSD Token

Dec 2019: HUSD market cap exceeded $100 Million

Jan 2020: PAXOS announced support for HUSD to instantly convert between PAX and BUSD with 0% fees.

Mar 2020: HUSD market cap exceeded $150 Million

May 2020: HUSD total issuance exceeded $1.2 Billion

Jun 2020: HUSD total issuance exceeded $1.5 Billion

4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

White Paper: The HUSD Whitepaper is a work in progress and will be announced to the community once released.

Official Website: https://www.stcoins.com/

Token Smart Contract: 0xdf574c24545e5ffecb9a659c229253d4111d87e1 (EtherScan: https://etherscan.io/token/0xdf574c24545e5ffecb9a659c229253d4111d87e1)

HUSD Data Center: https://www.stcoins.com/data

5.Link any available audits of the project. Both procedural and smart contract focused audits.

Monthly Attestation Reports of HUSD are available for public viewing here :https://www.stcoins.com/attestation/index

6.Link to any active communities relating to your project.

Find us on Twitter: https://twitter.com/Stablecoin_HUSD

Find us on Medium: https://medium.com/@Stablecoin_HUSD

7.How is the applying collateral type currently used?

HUSD is a stablecoin launched on the Ethereum network (ERC-20) for price stability, high degrees of decentralization, and security. Currently, the main use of HUSD is for cryptocurrency trading on exchanges and DeFi applications, and also as a fiat gateway to enter the cryptocurrency market. As we continue to also make HUSD available on digital payment platforms, users can use HUSD as a way to pay for goods and services.

To view the current HUSD Ecosystem, visit our official website: www.stcoins.com

8.Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

The HUSD is issued by Stable Universal Limited, a British Virgin Islands company and a wholly owned subsidiary of Stable Technology Inc. (a US incorporated company); the USD reserves backing the HUSD are held in custody by a New York State registered Trust Company.

9.Where does exchange for the asset occur?

HUSD is supported on a number of centralized exchanges, DeFi applications, and payment platforms for cryptocurrency trading, OTC, payment, lending, and more. Stcoin.com is where users can easily deposit and convert between HUSD and USD. Most of HUSD’s trading volume currently takes place on Huobi Global, Bilaxy and HBTC (BHEX).

Market data can be viewed on CMC and CoinGecko:

CoinMarketCap: HUSD price today, HUSD to USD live, marketcap and chart | CoinMarketCap

CoinGecko: HUSD price, chart, market cap and info | CoinGecko

Other data 3rd party / public data and information can be accessed here: HUSD Data Center | Stablecoin HUSD Market Data and Statistics | Stable Universal

The list of platforms that support HUSD is long, so we will list below the major platforms that currently hold most of HUSD’s trading volume:

Stable Universal: https://www.stcoins.com/

PAXOS: https://www.paxos.com/

Huobi OTC: https://c2c.huobi.me/en-us/trade/buy-husd/

Huobi Institution: Huobi Institution

Amber Group OTC: https://amberotc.com/

FTX OTC: https://otc.ftx.com/

Legend Trading：https://legendtrading.com/

10.Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.

N/A

11.Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.

N/A

12.List any possible oracle data sources for the proposed Collateral type.

N/A

@Lin and @Claude will help with further questions from the community regarding HUSD.

[wjmelements]

As a trader, I warn that it would be difficult to atomically liquidate HUSD collateral as the lack of HUSD liquidity in AMMs like Uniswap is prohibitive. BUSD and PAX have the same problem. Let us know when your company has provided sufficient liquidity.

[wjmelements]

Quantitatively, there’s

• $100 in UniswapV2
• $131 in UniswapV1
• $0 in Balancer

[MakerMan]

@Claude

HUSD is a standard ERC-20 token with approximately $114 million market cap as of July 1st 2020.

@Claude

Jun 2020: HUSD total issuance exceeded $1.5 Billion

Please reconcile these two statements as they seem inconsistent to me. I have never heard of HUSD and as another poster commented since no-one has heard of this it literally has no real markets or liquidity AFAIK. On-chain price oracles from decentralized markets that have volume look to be a significant problem as well. I see on cmc 90% of this market volume is exclusively on Huobi.

[Claude]

Thank you,MakerMan.

First, let me make the number more clear. “Total issuance of HUSD” means the accumulated issuance of HUSD token from day one to now. Market cap / Circulation means total HUSD issuanced minus total HUSD redeemed (AKA burned) as of a certain time.

Different stablecoins may use different words to mark this, for example：

USDC： $XXX Issued
PAX： $XXX Total PAX Minted

Please check the screen cap as following.

Source：https://www.circle.com/en/usdc

Source:https://www.paxos.com/pax/

For all crypto product and services,the first step is always difficult, with few people known and not widely accepted,and HUSD is no exception. So that’s why HUSD team has been worked so hard.

HUSD is still a young stablecoin, the 1st anniversary of HUSD is just coming soon.And HUSD has been very low key and put most of time to build our product and improve services. The primary goal of our team is to making HUSD stable, secure, and safe for our customers.

The market cap of HUSD ranked no.7 in stablecoins as of today.

Stablecoin market has changed a lot in this year, we have seen a lot of emerging new comers. Now we are proud to say, although HUSD is relatively young and small, with the support of our clients, community and 3rd party ecosystem members, HUSD has grew in a fast speed in past few months.

It is true that some people and institutions has noticed HUSD.This is what the HUSD ecosystem looks like as of now:

And HUSD data is already supported by Coinmarketcap, Coingecko.Coinmetrics, DeBank, DappTotal and many other top professional 3rd party platforms. I believe you can find the liquidity and market data in these platforms. (you can check by click here)

HUSD has been gradually recognized by crypto/DeFi communities, and we know we still have a lot of work to do. So that’s why we choose to apply for the support of MarkerDAO community.

For On-chain price oracles, we are already communicating with top oracles now, with more support from different nodes and of DeFi platforms, you will see the HUSD on-chain price soon.

You are also welcome to know more about HUSD by visiting: www.stcoins.com

And we are glad to see, by this communication we have introduced one more people to understand more of HUSD.

Cheers and thank you.

[monet-supply]

One thing you could consider is reaching out to @michwill from Curve.fi about creating an HUSD stablecoin swap pool. Curve has vastly improved slippage between stablecoins, and adding HUSD would help address some of the concerns about limited on-chain trading and usability.

[Lin]

Thanks! Great advice and thanks for directing us to the right person! We’ll reach out to Curve.fi and continue to improve our on-chain trading and usability.

[AXA]

Husd is owned/controlled by China based centralized exchange huobi global

A full disclosure is required, IMHO

[Planet_X]

@AXA

the collateral for the HUSD token is held by Paxos in the US, which is (according to the current state of the vote) already on the path of getting approved.

Yes - HUSD appears to be a Huobi subsidiary, but this is not necessarily bad.
The attestation reports https://www.stcoins.com/attestation/index comes from Withum.com, a US based accounting firm that does not have any offices in China, and appears based around a standard partner structure (so they are most likely not secretly owned by Huobi).

Yes - they are China focused and defi exposure is weak, but that has more to do with the initial debt ceiling than anything else.

[Claude]

Dear AXA,

The HUSD token is issued by Stable Universal Limited (a BVI company), an independently-run affiliate of Huobi Group.

The assets backing the HUSD are custodied by Paxos Trust Company (a NY-registered trust company) and attested by a US audit firm, neither of which are Huobi subsidiaries or affiliates.

Although not a direct Huobi-issued product, HUSD was first listed on Huobi Group’s global exchange, Huobi Global, on July 20th, 2019.

Thank you for your suggestion.

Claude

[Claude]

Hi All, it has been 6 months since the application was submitted.

And now I have some updates about HUSD in DeFi ecosystem to share with you：

Exchange：
Uniswap, Curve, Mooniswap, DerivaDEX （insurance mining）

Lending & Borrowing：
CREAM, ForTube, WePiggy (pre-mining)

Vault & Aggregator & Liquidity Mining：
Harvest, 88mph, YFII, 1inch

With more and more top tier platforms supporting, I think we can see a rapidly growing market demand for HUSD, particularly in the market for DeFi.

Hope these info can help with the Risk Work and Oracle Work of HUSD.

Thank you very much.