{"id":35518,"date":"2024-07-25T07:32:25","date_gmt":"2024-07-25T07:32:25","guid":{"rendered":"https:\/\/gateway.ventures\/?post_type=startupsnew&p=35518"},"modified":"2024-08-01T16:29:02","modified_gmt":"2024-08-01T16:29:02","slug":"uspd-io","status":"publish","type":"startupsnew","link":"https:\/\/gateway.ventures\/en\/startupsnew\/uspd-io\/","title":{"rendered":"USPD.io"},"author":29,"featured_media":35503,"template":"","meta":[],"startup_status":[],"class_list":["post-35518","startupsnew","type-startupsnew","status-publish","has-post-thumbnail","hentry"],"acf":{"logo":35505,"show_stage":["Yes"],"stage":"Pre-Seed","show_niche":["Yes"],"niche":"Blockchain","closing_month_year":"September 2024","female_founder":"","location":"Delaware, USA","website":"https:\/\/uspd.io\/","demo_video_url":"https:\/\/youtu.be\/DMppVmZ7BY4","meet-up_lp_link":"https:\/\/gateway.ventures\/en\/events\/uspd-io\/","calendly_code":"https:\/\/gateway.ventures\/en\/events\/uspd-io\/","calendly_code_Kopie":"","oneline_description":"US Permissionless Dollar","description":"","problem":"Centralization Risks<\/strong>\r\nMany stablecoins, like USDC, are backed by reserves held in traditional financial institutions. This creates a dependency that contradicts the decentralized ethos of cryptocurrencies.\r\n\r\nEvent 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.\r\n\r\nIntransparency in Reserve Management<\/strong>\r\nStablecoins claim to have reserves equivalent to the number of coins in circulation, but without regular, transparent audits, these claims are hard to verify.\r\n\r\nEvent 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.","solution":"Decentralized Stablecoin<\/strong>\r\nReserves in Ethereum, independent of traditional banking systems.\r\n\r\nCreation and Verification<\/strong>\r\nAnyone 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.\r\n\r\nReserve Management<\/strong>\r\nIndependent \u201cstabilizers\u201d ensure that there is always more than enough capital for each USPD in circulation.","market":"Total Market Capitalization of Stablecoins\u00a0<\/strong>(as of July 2024)\r\nUSD 173bn\r\n\r\nForecast<\/strong>\r\nExperts 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.","usp":"This stablecoin provides\u00a0fully transparent reserves updated in real-time<\/strong>, allowing\u00a0unrestricted conversion<\/strong>\u00a0to and from Ethereum at any moment. Its assets are designed to be\u00a0non-freezable<\/strong>\u00a0and have\u00a0no exposure to traditional banking or financial systems<\/strong>.","business_model":"Market-Neutral Strategy<\/strong>\r\nThe 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.\r\n\r\n\r\nRevenue Streams<\/strong>\r\nIncome from ETH staking and funding fees minus hedging costs results in an annualized return of approximately 39%.","traction":"Partnership with Radix Blockchain<\/strong>\r\nUSPD.io has formed a partnership with Radix Blockchain, aiming to create up to 10m USPDs for integration into their ecosystem.\r\n\r\nCollaboration with Morpher<\/strong>\r\nThrough its collaboration with Morpher, a virtual trading platform, USPD.io gains access to 55k active portfolios, providing a substantial initial user base.\r\n\r\nGrowth Potential<\/strong>\r\nThis strategic positioning allows USPD to potentially achieve rapid and effective growth at the outset.","exit_potential":"A possible exit is the sale to large decentralized finance platforms, institutional crypto investors or the launch of a public token.","nrofcoinvestors":2,"tm_1_name":"Martin Fr\u00f6hler","tm_2_name":"Willy Woo","tm_3_name":"Thomas Wiesner","tm_4_name":"","tm_1_position":"CEO","tm_2_position":"GP","tm_3_position":"CTO","tm_4_position":"","image_-_team_member_1":35445,"image_-_team_member_2":35443,"image_-_team_member_3":35465,"image_-_team_member_4":null,"deal_link":"https:\/\/gateway.ventures\/d\/investment-opportunities\/uspd","founder_group_image":null,"why_we_invested_in_this_startup":"","dealcaptain_opinion":"Stablecoins are the foundation of the crypto world\u00a0<\/strong>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.\r\n\r\nBesides 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.\r\n