[TCAD] MIP6 Collateral Onboarding Application

[TCAD] MIP6 Collateral Onboarding Application for True CAD 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.

TCAD is a fully collateralized custodial stablecoin, backed 1:1 by Canadian Dollars held in reserve. This allows users to transfer and use CAD 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. TCAD launched in May 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/truecad

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

TCAD token contract: https://etherscan.io/token/0x00000100F2A2bd000715001920eB70D229700085

  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/TrueCAD

I wasn’t able to find any technical audits specific to TCAD 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 TCAD.

  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?

TCAD is used as an on chain representation of the Canadian 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 TCAD/ETH on Uniswap v1. Celsius (custodial lending service) offers interest on TCAD 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 CAD 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?

TCAD 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 CADUSD price data which could be used to represent the TCAD price.

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

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


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

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TCAD-Loonies and TCAD-Toonies should be the two collateral type names, for sure.

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TCAD is trading 5% above its peg on Uniswap.

Yeah the liquidity is very thin, not uncommon to see TCAD, TAUD, and TGBP trading 5-10% off the peg on uniswap. The only efficient way to trade back to USD at this point is directly through TrustToken.

Hey @monet-supply, thanks for posting the TCAD 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 TCAD and are ready to commit several hundred thousand dollars worth of TCAD 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.

@wjmelements @monet-supply - we’re working on improving liquidity for TrueCurrencies on Uniswap and will keep you posted as we make progress.

Our team is available to answer any questions about TCAD 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 TrueCAD 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:

TrueCAD:
https://etherscan.io/address/0x5eae6fad6232c7a51dc7358f1a7131da34fc8903

Git branch for new contract:

Cheers everyone!

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As a member of the TrustToken team, 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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We’re 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.

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

One of the points brought up in the recent collateral call was about having Uniswap liquidity to support rapid liquidations. Wanted to share the progress we’ve made on that front:

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