Freedom Dollar (fUSD) — the private, decentralized stablecoin native to Zano

[GinoFPM]

@kwibs Yeah I have tried it out and the speed and costs are very low which is amazing imo!

Would deff recommend!

[freedomswap]

Here are the FAQ around how the censorship resistant bridge operates: https://www.freedomdollar.com/en/faq#bridge

[ZMiner]

Why coverage ratio keeps decreasing over time ?
was 1.82x and is now at 1.37x ?

[stelliedan]

@ZMiner The coverage ratio depends on the amount of fUSD minted and the amount of Zano held in reserve as well as the price of Zano in relationship to the amount of fUSD minted.

The formula used in determining the coverage ratio is as follows:
(Zano reserves x spot price) / (Issued fUSD - fUSD in the Public Audit Wallet)

Hope that helps clarify the fluctuation of the coverage ratio.

[freedomswap]

@ZMiner Luckily, thanks to the staked Zano earning about 2.5% per year, the coverage ratio will grow by
1.82x x 2.5% = 4.55%
or
1.37x x 2.5% = 3.425%

Compounding over time, this will add up to very significant reserves for fUSD.

[ZMiner]

it is a bit unclear but what was the overcolateralization ratio for the first 1 million fUSD ?
could you extrapolate what will the ratio be when there are 100M fUSD in circulation , rough numbers ?

[freedomswap]

If I recall correctly, fUSD was launched with $100K in circulation, and $1M in Zano collateral in the public audit wallet giving it a 10X coverage ratio, but that dropped down to about 5x when the next $100K was minited, with only $1.1M in the reserve wallet at that point. It is hard to know what the ratio will be once $100M is minted but it seem that 5X or 10X are very possible because the market cap of Zano would need to grow a lot, including the value of the reserve wallet.

[freedomswap]

I'm just bumping this thread and wondering who here has been enjoying the permissionless USDT <> FUSD bridge? I'm using it daily to pay for all sorts of things.

[tommycat]

Pay for online stuff or offline?

[freedomswap]

I use it for both! The new USDT / USDC permissionless bridge at FreedomDollar.com make it so easy now!