USPD.io
Pre-Seed
Co-Investors: 2
Delaware, USA
Stablecoins are the foundation of the crypto world as they are serving as a stabilizing force in the otherwise volatile cryptocurrency market and are one of the fastest growing applications within the blockchain technology, enabling secure trading and international transactions without the concern of sudden value drops.
Besides the macroeconomic potential, several reasons make USPD.io an attractive investment opportunity. It is especially appealing for investors betting on decentralization, innovation, and growth in the DeFi sector and digital transformation, where companies and organizations are fundamentally changing and improving their business models, processes, and customer experiences through digital technologies.
Tim Draper, renowned for his early investments in global players (e. g. Tesla, Skype, SpaceX, Robinhood, Twitch, Hotmail) and a significant figure in the crypto world, leads USPD.io’s funding round with his Venture Capital firm, Draper Associates. His acquisition of 29,656 bitcoins in 2014 (link to the publication: here) highlights his visionary approach. Draper’s extensive network could crucially expand USPD’s reach and foster vital partnerships, marking his involvement as a strong endorsement of the company’s potential.
Centralization Risks
Many stablecoins, like USDC, are backed by reserves held in traditional financial institutions. This creates a dependency that contradicts the decentralized ethos of cryptocurrencies.
Event Example: In March 2023, following the collapse of Silicon Valley Bank (SVB), the stablecoin USD Coin (USDC) experienced a significant depegging from its 1:1 dollar ratio, dropping as low as USD 0.87. This incident occurred because a portion of the reserves backing USDC were held in SVB, showcasing the risks associated with centralized financial operations and dependency on traditional banking systems.
Intransparency in Reserve Management
Stablecoins claim to have reserves equivalent to the number of coins in circulation, but without regular, transparent audits, these claims are hard to verify.
Event Example: Tether (USDT), historically the largest stablecoin by market cap, has faced criticism and legal action over the lack of transparency regarding its reserve holdings and the actual backing of the coin.
Decentralized Stablecoin
Reserves in Ethereum, independent of traditional banking systems.
Creation and Verification
Anyone can create USPDs by interacting with the blockchain. The blockchain holds sufficient reserves for each USPD issued and these reserves can be audited in real time.
Reserve Management
Independent “stabilizers” ensure that there is always more than enough capital for each USPD in circulation.
This stablecoin provides fully transparent reserves updated in real-time, allowing unrestricted conversion to and from Ethereum at any moment. Its assets are designed to be non-freezable and have no exposure to traditional banking or financial systems.
Market-Neutral Strategy
The business model is based on the provision of a decentralized stablecoin that is backed by Ethereum (ETH) and whose value is offset by counter-positions to a stable value.
Revenue Streams
Income from ETH staking and funding fees minus hedging costs results in an annualized return of approximately 39%.
Total Market Capitalization of Stablecoins (as of July 2024)
USD 173bn
Forecast
Experts believe that increasing adoption in the financial sector and the growing importance of decentralized finance (DeFi) applications will drive significant growth until 2025, without mentioning accurate numbers. Estimates vary, but some forecasts suggest that the market value could reach several trillion US dollars if the current growth rate continues and integration into traditional financial systems progresses further.
Partnership with Radix Blockchain
USPD.io has formed a partnership with Radix Blockchain, aiming to create up to 10m USPDs for integration into their ecosystem.
Collaboration with Morpher
Through its collaboration with Morpher, a virtual trading platform, USPD.io gains access to 55k active portfolios, providing a substantial initial user base.
Growth Potential
This strategic positioning allows USPD to potentially achieve rapid and effective growth at the outset.
A possible exit is the sale to large decentralized finance platforms, institutional crypto investors or the launch of a public token.
CEO
GP
CTO
This document is non-binding preliminary information that provides an initial impression of the financing options offered. Neither this document nor the statements made by us in this context can be a sufficient basis for a financing decision. Investors should examine the possible investments themselves. Responsibility based on own analysis. This document does not constitute a sales prospectus, a public offer of an investment, an invitation to submit an offer, investment advice or investment brokerage. In providing this information, we make no representations, warranties or other contractual or quasi-contractual obligations, including with respect to the completeness, content or accuracy of the information reproduced in this document. This document is to be treated confidentially and may not be reproduced in whole or in part, passed on to third parties or published.
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The scenarios determined by the investment calculator are based on empirical values and assumptions. They are intended solely to illustrate possible developments and are no guarantee of future results. The actual performance of an investment may deviate significantly from the results forecast in the scenarios presented due to a wide range of macroeconomic and microeconomic factors. Start-up investments involve a high level of risk, which can extend to the total loss of the investment. It is expressly pointed out that neither Gateway Ventures nor its partners or representatives can be held liable for decisions made on the basis of the results of this calculator. Use of the calculator is at your own risk. You should seek independent financial advice and conduct your own research before making any investment decision.