1. Introduction to HUSD
HUSD is a stable currency solution at the exchange level proposed by Huobi to provide a freely convertible medium for compliance currencies. We believe that the fiat channels on which single stable currency depends cannot meet the increasing demand for cryptocurrency market. As the size of the stable currency market increases, counterparty risks of the issuer can not be neglected by investors. Huobi has never given up on the exploration of HUSD, and is committed to providing risk protection and fair pricing mechanism for stable currency users. During this exploration process, we have encountered many problems and found corresponding solutions:
|Issuer fiat channel||Sign a legal agreement with the issuer to ensure an adequate 1:1 dollar exchange quota per day|
|Position management||Maximum and minimum target positions (View HUSD Rules)|
|Fair pricing||Link to the US dollar price in the secondary market (View HUSD Rules)|
|Risk control||Fusing mechanism, handling of abnormal conditions (View HUSD Rules)|
2. Advantages of HUSD
The stable currency is supposed to be the most stable safe-haven asset in cryptocurrency field, but due to imperfect supervision, any stable currency architecture will face legal risks in the future. HUSD has cooperated with several stable currencies and signed the agreement, built up a strong primary market position adjustment capacity, offering a variety of stable currency users safe bastion: users can choose the most convenient currency to deposit and they don't have to worry about assets devaluation or even legal risks because they can always choose to transfer the HUSD out into a stable currency.
The pricing mechanism of HUSD determines its dollar index price (View HUSD Rules). In theory, it can be linked to the stable currency with the least fluctuation in the pool. At the same time, we will set preferential conditions (see below) to attract acceptors to provide HUSD liquidity, and truly aggregates the liquidity of all stable coins.
In order to protect the rights and interests of users, HUSD strictly screens the stable currency and regularly examines each stable currency, including but not limited to the compliance of the issuer, the smooth flow of legal currency channel, market share and liquidity, and the stability of the dollar index price. We will take active actions in the face of a troubled currency. For details of the handling of abnormal situations, please refer to HUSD Rules.
3. HUSD Preferential Terms:
We offer 1:1 HUSD exchange rate for each stable currency and preferential handling fee for merchants who meet precipitation volume, trading volume or market-making conditions. For further information, please contact us at firstname.lastname@example.org.