Just want to let everyone aware that TUSD DC is going to zero if this poll passes as well as Friday’s executive including these changes.
TUSD is undergoing a material change to its ownership structure. Is there a process for reducing exposure in the event of a material change?
Yes, I think what worries most the people is that Justin Sun will have a say in managing things, many don’t trust him due to his past actions.
Hello Maker community，
We know there are some concerns about the new ownership of TUSD and we’re here to address your questions. We want you to feel confident that we as the new TUSD team is going to run TUSD with the same high level of trust and transparency Trust Token has always done.
What is the process for freezing TUSD (a.k.a blacklisting a TUSD address)?
The orperation process will remain excatly the same as before. we will keep everything unchanged.
We will only freeze funds when directly ordered to do so by a law enforcement agency or court of competent jurisdiction, and this agency or court provides appropriate documentation proving their right to issue said order.
We are 100% guarantee that funds will not be frozen under any other circumstances.
How many signers are there in the multisig?
This stays the same as before. An absolute minimum of 3, with 2/3 required to sign any owner action. More signers may be added over time for additional security (e.g. 3/5 or 5/7).
What type of multisig will be used?
A Gnosis SAFE (gnosis-safe.io). The Gnosis SAFE is extensively audited and is the most trusted multi-sig wallet on the market today. It was used by the TrustToken team to secure the TUSD smart contracts as well. We keep that the same as before.
Who are the signers in the multisig?
The signers for the multisig are senior members of our new TUSD team.
What auditing will be in place for the funds backing TUSD?
We will continue working with Armanino who provides real-time attestations and an on-chain oracle for the funds backing TUSD. This is part of what has made TUSD the most transparent stablecoin to date and we intend to build upon the strong foundation that has been laid.
We’re here to listen and to answer questions. Please feel free to message - your feedback is very valuable to us!
What else would help you feel comfortable continuing to fully support TUSD, we’re looking to build a great & trusted product and your feedback is valuable.
I must add that TrueUSD collateral funds are segregated from TrustToken funds and mostly (I guess) stored in Hong Kong so somehow outside of the US regulation (which is something we might want looking at this thread).
Not sure it’s the best place, but looking at the Armanino report:
The Hong Kong depository institution also invests in other instruments
to generate yield to answer administrative and related costs, fees and charges. In all cases, cash
equivalents and other instruments are recorded at cost which approximates the fair value, or cash
We don’t know what, how much and it’s not mark-to-market. That has a strong 2008 smell. I think we should make proper due diligence before accepting $50M of liability from someone (this goes for other stablecoins as well).
Must add that the most transparent stablecoin is DAI.
I feel like we’re getting mixed signals here. Who is managing TUSD? Is it a new team or the old team?
I think this sort of confusion is part of what is making everyone nervous. Personally I’d appreciate a clear understanding of who is in control of the TUSD contract.
Could you provide a list of these jurisdictions?
@TrueUSD_Official and @LongForWisdom, thank you both for your replies. I’d like to confirm everything that @TrueUSD_Official has stated above- we are working closely with them to make sure TUSD has the same high level of trust that it’s always had, but with increased resources behind it to hopefully become the largest and most trusted fiat-backed stablecoin in the world. The largest and most trusted crypto-backed stablecoin will remain DAI of course.
Ownership of TUSD will be moving over to an Asia-based consortium - they will be working with the TrustToken team who will continue to manage the operations, compliance, and banking relations of the TUSD product. As @TrueUSD_Official has described above, the signers for the multisig will be senior members of the new TUSD team from the consortium. They will be continuing to use the high security standards that we have had before.
This one is a little over my pay grade, I’ll pass this along to the legal team and see if there’s more clarity they can provide on exactly which jurisdictions would be considered competent.
Can you please provide information about this consortium and who its members are? There are rumors about who it may be, but I have not seen any official statement from you or the team. Alternatively, details about why information cannot be provided would be great!
I trust you and your team! However, you have dodged multiple questions in this thread about the consortium. If you are intentionally redacting this information, then I believe we should reduce exposure to this asset until these questions are answered and understood.
Appreciate the response. That does clear things up a bit. Thanks!
does anyone think it matters whether ‘the team’ will be ‘working with’ the new owners?
the project has been sold to a new entity and the private keys handed over
there is no reason to trust the old team given how this played out or the new team given that they hide their basic identity
just wind the legacy vaults down and let the new owners apply to be listed as new collateral, if they are so amazing and transparent they will understand, be prepared and agree it is necessary
Yeah, this sums it up.
Hello Maker community!
Popping in to say hello and to make a little introduction. I’m Annabel from the new TrueUSD team, and will be leading the marketing and business operations.
Following up on what @rafael.cosman and @TrueUSD_Official had already stated, the original TrueUSD team will continue to work on TUSD. I will be responsible as the main operations, marketing, and BD contact for the new TrueUSD team.
Please rest assured TrueUSD will continue to maintain its level of service and quality, and we will continue to develop TUSD to become the most trusted fiat-backed stablecoin in the world.
My team and I fully understand the concerns from the Maker community and we have stated the current situation with transparency and sincerity regarding your major concerns and questions. If anyone has any more inquiries that I could help with, feel free to reach out to me here, or via:
Thank you for everyone’s understanding, and hope you can continue to support the awesome regulated, fiat-backed stablecoin that is TUSD!
Not appreciated. Transitioning a business line to new ownership is a normal thing that will happen over time. And the responsible way to do it is to make a public announcement in advance of any changes in control, which is exactly what we did. This gives MakerDAO and other users a chance to react to the change and decide if they want to continue using TUSD. If you don’t like it, you don’t have to.
As stated above, we certainly hope you will continue using TUSD and are working with the new ownership to provide whatever specific information they can to help your community feel comfortable with the product going forward.
it is true that the blog post helps contextualise the situation, thanks for that
IIRC though you don’t currently hold the keys nor own the TUSD business
with all due respect, you have no physical or legal control over what happens next so IMO it no longer makes sense to assess the future of TUSD as an asset based on your historical stewardship
if the new owner is Justin Sun - a reasonable assumption given the mention of TRON and ‘asia-based consortium’ in the same sentence in the public announcement - https://unchainedpodcast.com/abuse-and-ethical-lapses-what-happened-when-justin-sun-acquired-bittorrent/ - https://cointelegraph.com/news/justin-sun-accused-of-bribing-his-way-to-the-top-of-the-steem-hierarchy - i’m not surprised this announcement coupled with ongoing avoidance of naming names is raising eyebrows here
as we don’t know who the new owners are we can’t decide whether or not to trust them
thanks to @AnnabelTUSD for introducing yourself, can you name the new owners of the business and custodians of the private keys?
as a general policy it makes perfect sense that MKR would wind down vaults when an underlying collateral type is sold off, the new owners can always apply to open new vaults which should be trivial after a vote as all technical details will be the same
ideally the process would be as painless as possible for all involved, maybe even an automated migration path for vault holders
the same conversation should happen if there was a major change at USDC, or a RWA like a farm was sold to new owners
we should decide for ourselves who (public, named individuals) to trust, not simply delegate to a legal structure (‘a consortium’) that can be bought and sold on the market - it’s silly to make a fuss over flash loans forcing governance votes but then allow collateral types to be sold to new management without review
it’s worth watching the relevant discussion from the last risk governance meeting from about 50 mins - https://www.youtube.com/watch?v=1skpcjr182Y
There is a material change in risk associated and the underlying control. Until such time as another risk assessment can be produced, I would recommend lowering the debt ceiling to zero for this collateral.
Are we still talking about blockchian? We should focus on whether TUSD works as usual but not who owns TUSD right now. As long as they still work with credible audit&trustee companys and pegged one to one with USD, it doesn’t matter who own the private key.
Welcome to the forum. : )
The process of decentralization is long, and until TUSD (or any project really) is fully trustless, there are several risks to consider.
It’s not (only (I guess?)) a matter of PR.
There’s tremendous platform risk with transfer of ownership, and auditors coming every few months (if you’re lucky) do not mitigate that risk. It’s hard to view TUSD as the same risk profile given all this and that’s basically what the community here is saying. We are not wishing ill to the TUSD folks, but as a stablecoin (already a lot of risk there) with new “hidden” owners there’s not a lot of reason to carry on with the collateral type from a Maker perspective.
Thanks for the feedback, and understand the concerns and curiosity.
The acquisition of TUSD is led by Techteryx, an Asia-based conglomerate with businesses in Hong Kong, Singapore, Guangzhou, Shenzhen, Beijing etc. in the traditional real estate, entertainment, environmental, and information technology industries.
The conglomerate sees a significant unmet need for financial innovation in global amongst traditional sectors, and have identified cryptocurrencies and in particular, stablecoins, as a key part of the next generation of financial products and services that is capable of driving significant adoption.
For purposes of acquiring TUSD, they have created a joint venture led by Ms. Jennifer Jiang, the largest owner and a business executive with prior experience in the traditional financial industries in mainland China and Southeast Asia, including Singapore and Hong Kong. Ms. Jiang has previously led the acquisition of over a dozen companies, currently worth over US$3.0 billion and is deeply connected with traditional industries.
I’d like to emphasize that, while Ms. Jiang is chief executive of the new joint venture, neither she, the conglomerate nor anyone else affiliated with the conglomerate has control over the underlying private keys and funds. The private keys are managed in the same way as before, by the new TUSD management team with multisignature, a Gnosis SAFE (gnosis-safe.io) solution. All TUSD funds are held at fully licensed and regulated banks and trust companies in the United States and Hong Kong, including PrimeTrust (https://www.primetrust.com/), Silvergate Bank (https://www.silvergatebank.com/) and First Digital (https://1stdigital.com/). All funds are held in FBO accounts for the benefit of TUSD token holders and cannot, under any circumstances, be withdrawn by its owners for any proprietary use. All minting and redemptions of TUSD will continue to be verified by these custodians and banks regulated by U.S. and Hong Kong regulators before any TUSD can be created or burnt. Neither the old or the new TUSD management has discretion to create TUSD or burn TUSD. Ms. Jiang is a business executive and has no intention nor the ability to deal with private keys or technological matters.
Importantly, as noted above, we’d like to emphasize that (1) the same TrustToken team will continue to be involved in minting and redemptions of TUSD, for compliance and for management of the underlying reserves, (2) the underlying reserves will continue to be audited and attested to on a live basis by Armanino LLP, a top 25 accounting and audit firm based in the US (https://www.armaninollp.com/) who, in addition to live attestations of stablecoins, also provide “proof of reserves” audits for exchanges (https://www.armaninollp.com/software/trustexplorer/proof-of-reserves/).
None of these core features of TUSD will change based on the new ownership. This structure is similar and directly on par with USDC issued by the CENTRE consortium.
Ms. Jiang will be supported by a diversified group of team members from the constituent enterprises. The exact team appointed for Techteryx is talented and experienced, with team compositions including Terrance, who is responsible for the engineering and product and myself in leading the marketing and business operations. If you have further questions about TUSD, feel free to reach out to us.
I must clarify, especially in regards to questions like whether TUSD 's new ownership is Justin Sun - no it is NOT. We also have no connection with the company which invested in Poloniex. Poloniex currently doesn’t list and support TUSD in any way. We are hoping to get TUSD listed on Poloniex in the future. We will develop stablecoins on TRON as well as other blockchains like AVA, and work along with our important partners to further promote the use and adoption of TUSD in the same way that TUSD has conducted its operations, compliance and banking relationships in the past. TUSD will continue to actively support the Ethereum and Binance blockchains, user experience and benefit will remain and enters the next stage of growth. We have also recently entered into a collaboration with Avalanche to launch TUSD on AVA as well.
We will work to earn your confidence and trust, and we will go all out to make TUSD better. TUSD will continue to live on the Ethereum blockchain and support the Binance blockchain, and will soon be coming to Tron, Avalanche and additional blockchains natively.
Again, I must emphasize that we will continue to work with @rafael.cosman and the TrustToken team for TrueUSD. Banking and live attestations are and will continue to be with the original organizations TrustToken Inc. had worked with.
Thanks to your detailed explanation now I can rest assured to keep holding TusD