USD Tez (more commonly referred to by its symbol: USDTZ) is a USD-pegged stablecoin based on a fungible Tezos community standard — the FA token standard. USDtz pegs a formally-verified measure of (1:1 parity) value between itself and the United States Dollar (USD) providing a solvent, and scalable source of liquidity that is the ideal solution for low-fee Tezos-based asset trading.
The USDtz model is designed to be the most scalable model for liquidity. Tezos (XTZ) trading volume has grown by a factor of over 100x since 2019, outpacing its similarly valued network peers. and XTZ trading seems to be in a continuing upward trajectory even still. More exchanges are adding XTZ and more traders and investors are adopting it in their respective portfolios.
With great demand and growing volume, comes a need for great supply. Supply in this instance is a form of on-chain liquidity.
The process of minting USDtz begins with a collateral deposit of FIAT by an enrolled USDtz minter. FIAT collateral deposits may include certain other stablecoins (those which themselves can be confidently redeemed for FIAT cash).
Anyone in the world can audit USDtz's reserves, by comparing the minted supply with the collateral wallet. Check the reserve page for more.
Formally-verified true price calculations demonstrated on-chain, protecting USDtz from manipulations and 'oracle attacks' that users of other stablecoins ultimately must endure.
The balance between shifts in supply and demand of USDtz, including the size, and determination for minting and scaling of new USDtz is based on autonomously executed algorithmic response to formally-verified measures of real-world market data.
Many stablecoins charge stability fees or some form of that to keep the coin from under-collateralizing. Under-collateralization of a stablecoin, for however brief of a period, is what causes stablecoins to destabilize.
Since USDtz is backed with full FIAT-based solvency, and since that solvency can be audited at any time by any user (check reserve page), such concerns are not applicable to USDtz.
Therefore minters and users can hold USDtz without incurring any fees.
If you're trading XTZ and other Tezos-tokens, accept no substitute. USDtz's native on-chain nature makes it super gas-efficient, for the lowest fees.
USDtz is written on an optimized pure-Michelson smart-contract using the upgradeable FA Tezos-token-standard rendering the quickest most network-efficient swap, expending the least amount of gas.
USDtz's on-chain nature allows it to serve as programmable money — to support a wide-array of ecosystem applications in which remittance is executed through smart-contract-driven conditionals. These features are critical for financial instruments that depend on conditionals, such as bonds and derivatives.