Aave v2 Ethereum Pool’s TUSD Reserve Freeze – A Cautious Approach to Investing
In the wake of a recent TUSD asset incident, several members of the Aave V2 Ethereum pool have recommended freezing the TUSD reserve. This calculated measure, if adopted, will prevent users from depositing or borrowing TUSD on the Aave V2 Ethereum pool.
What Does This Mean for Existing TUSD Holdings?
- This proposed freeze would not influence existing users’ holdings of TUSD.
- Even if the freeze goes into effect, users can continue to payback and withdraw TUSD from the Aave V2 Ethereum pool.
- This AIP (Aave Improvement Proposal) demonstrates a prudent approach towards the TUSD issue, allowing the community ample time to assess the condition before making further decisions.
Community Support
Even with 14 hours remaining for the voting period to conclude, there seems to be significant support for the measure, with a current support rating of 83.76%.
TUSD’s Current Performance and Stability
- Methods for minting and redeeming TUSD tokens have become increasingly complex, registering difficulties for some users.
- TrueUSD (TUSD) issuers have previously reiterated that they had “no exposure” to Prime Trust, a digital asset on- and off-ramp business, which was abruptly closed down by Nevada authorities.
- Despite TUSD losing its peg to the dollar, the issuing team remains optimistic about its trading volume – a sentiment that adds to coin holders’ concerns in light of the recent fall of TUSD custodian Prime Trust.
TUSD’s Recent Volatility
- In the middle of TUSD’s recent market fluctuations, certain moves came across as betting against the coin.
- Widely known crypto exchange platform – Kraken, shared in a post that users could gain exposure to TUSD without having to hold it, simply by moving any collateral currencies to a futures wallet on their platform.
- TUSD’s value fell to 80 cents per USD on Binance.US before finally settling at 90 cents to the dollar at the time of this report.
- As per CoinMarketCap data, TUSD’s total market capitalization remained stable in the initial hours of trading, followed by a sudden drop that saw it lose nearly $100 million.
DISCLAIMER:
The information presented here merely serves as general market commentary, and should not be interpreted as investment advice. We strongly recommend carrying out your own research before making any investment decisions.
