[TAUD] MIP6 Collateral Onboarding Application

[TAUD] MIP6 Collateral Onboarding Application for True AUD Token

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

@monet-supply

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

TAUD is a fully collateralized custodial stablecoin, backed 1:1 by Australian Dollars held in reserve. This allows users to transfer and use AUD on the Ethereum network.

  1. Provide a brief history of the project.

TrustToken launched their initial TUSD stablecoin in March 2018. They have since expanded their line of tokens to include several other fiat currencies, including TGBP, TCAD, TAUD, and THKD. TAUD launched in April 2019.

  1. 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.

Website: https://www.trusttoken.com/trueaud

Source Code: https://github.com/trusttoken/true-currencies

TAUD token contract: https://etherscan.io/token/0x00006100f7090010005f1bd7ae6122c3c2cf0090

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

Real time attestation of reserves: https://real-time-attest.trustexplorer.io/token/TrueAUD

I wasn’t able to find any technical audits specific to TAUD on the TrustToken website. Presumably the technology is similar to TUSD. I defer to a representative of TrustToken to clarify if any separate audits have been conducted.

For reference, there is a discussion thread about the technical costs of maintaining TUSD collateral type due to the complexity of the token contract and frequency of upgrades. Similar concerns may apply to TAUD.

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

Twitter: https://twitter.com/trusttoken

Telegram: https://t.me/joinchat/HihkMkTja1gIyBRM1J1_vg

  1. How is the applying collateral type currently used?

TAUD is used as an on chain representation of the Australian Dollar fiat currency. The vast majority of DeFi is conducted in USD, so there’s limited direct usage in Ethereum apps. There is a pool for TAUD/ETH on Uniswap v1. Celsius (custodial lending service) offers interest on TAUD deposits.

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

TrustToken controls the ethereum smart contracts, while the underlying AUD funds are held by qualified custodians.

I will defer to a representative of TrustToken to clarify the exact legal structure and jurisdictions involved.

  1. Where does exchange for the asset occur?

TAUD is traded on Uniswap v1 (fairly low liquidity), and can be redeemed directly through TrustToken via their website (KYC required).

  1. (Optional) 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.

I defer to TrustToken for any legal opinions on regulatory standing.

  1. (Optional) 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.

I defer to TrustToken for info about any regulatory registrations.

  1. (Optional) List any possible oracle data sources for the proposed Collateral type.

There are numerous reputable sources for AUDUSD price data which could be used to represent the TAUD price.

  1. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.

TAUD has lower on chain liquidity, so auction keepers would likely need to open/maintain an account with TrustToken for the purposes of redeeming TAUD.


Similarly to TGBP, a TAUD vault type may remain useful even if the peg stability module mostly eliminates the need for USD stablecoin vaults by allowing Australian investors to use DeFi without taking forex risk.

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Hey @monet-supply, thanks for posting the TAUD application here. We’re very excited about the potential here and think having multiple, real-time-audited, non-correlated stablecoins could significantly strengthen the Maker system.

I wanted to post a link to the relevant thread responding to some community concerns about TrueCurrencies:

We’re looking forward to working with the community to onboard TAUD and are ready to commit several hundred thousand dollars worth of TAUD to create vaults, borrow DAI, and sell into the market in order to help stabilize the DAI peg, in addition to running a keeper for this collateral type.

Our team is available to answer any questions about TAUD the community has.

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Hey all,

We have completed a refactor of our True Currencies smart contracts and plan on upgrading the TrueAUD smart contract. These upgrades are meant to simplify our stablecoin code in order to increase transparency and compatibility. Below is the proposed implementation, which is currently undergoing audit:

TrueAUD:
https://etherscan.io/address/0x6b43055a996eCBeB43b7458401f12655240DcEb5

Git branch for new contract:

Cheers everyone!

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@monet-supply do you know when we’re going to be having a community vote re: on-boarding of TAUD? Just wanted to check.

On Monday! Collateral Status Index
https://github.com/makerdao/community/pull/726

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Awesome, I believe @lucasmanuel has already had a chance to look over the TAUD, TCAD, and TGBP smart contracts.

We’ve got our own liquidity in these currencies ready to go to help sell DAI into the market, and are going to be engaging with the TrueCurrencies community to get additional liquidity as well.

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As a member of the TrustToken team, I wanted to express we are excited to have TRUE currencies evaluated and hope everyone sees our commitment to the community. We strive to build the future of finance responsibly with strong ethical standards, code and security! Vote YES for TRUE.

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As I mentioned on the other thread, I am pretty excited about this. As someone who regularly trades Forex markets I think that the higher rates in DeFi offer a compelling reason for those executing carry trades to hold their positions in these tokens as opposed to a retail Forex broker. There’s also less counterparty risk, IMO. Of course, this is all contingent on the ability to achieve leverage through Maker Vaults, but it’s a big potential market if executed correctly.

Basically the idea is T[Assets] + AMMs + Vaults + DSR (or a Compound market) = Better Forex trading

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@g_dip agreed- very excited about the potential to allow forex traders to get leverage. We’re working right now on increasing the liquidity in our Uniswap pairs to make this loop easier to complete.

Would a curve pool with Tcurrencies be an effective product? One pool with TAUD/TUSD/TGBP/TCAD would be a really sick forex product.

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@Aaron_Bartsch we’ve talked with Michael from Curve.fi and are thinking a pool like TGBP/BGBP (Binance GBP) would make sense, but a pool like TUSD/TGBP wouldn’t work well with the way Curve.fi currently works. This is because Curve.fi concentrates liquidity around the 1:1 point, and the TUSD/TGBP exchange rate is not 1 and is not stationary.

We do think a balancer pool with all of the TrueCurrencies would work well and it’s something that we’re actively looking into!

Also- putting a link to the ongoing vote here, would appreciate your support.

https://vote.makerdao.com/polling-proposal/qmpimwmkyyxbknuzdhc7ttsqs2duovfq8zhznuqdvhmpso

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Makes sense. A balancer pool with all the tokens was my second thought. Thanks.

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Now that you mention it, wasn’t that Libra’s original intention?

Cool how the DeFi community is effectively building its own response, beyond the standard single-fiat-backed stablecoin.

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@rafael.cosman Did you consider wrapping JPY, CHF & NZD? Then you would have the traditional 7 majors covered (except for EUR).

Would be interesting to know if these where ruled out due to liquidity, market demand, regulatory or other reasons. Thanks.

TrustToken’s business model requires positive interest rates which excludes JPY and EUR.

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Thanks, @monet-supply and @rafael.cosman.

Not sure if you’ve seen this forum thread, but it might be a good opportunity for the community to learn more about it?

@tbone- negative interest rate currencies are more difficult but are not impossible… if we’re able to get our non-USD TrueCurrencies supported on Maker and other DeFi protocols, we may be able to look into EUR, NZD, CHF, JPY, and others. But right now we’re still working just on growing DeFi support for our existing non-USD TrueCurrencies before we launch more.

@juanjuan- good point, I’ll make a post there.

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About to ship the update that we shared with your smart contract team a while ago. Let us know if there are any questions or concerns about this.

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Just wanted to share an update here: the TrueAUD upgrade is complete. This upgrade was already reviewed by the maker team, please let us know if there are any questions or concerns.