Threshold Network (T) announced the launch of Threshold USD (thUSD), a decentralized stablecoin pegged to the US dollar and backed by Bitcoin and Ethereum.
However, Threshold Network, which previously announced that an important announcement would be made soon, received a negative reaction in its price because the announcement did not meet expectations.
Following the announcement, a sudden downward movement was observed in the T price.
“In an era where DeFi is reshaping our financial landscape, thUSD stands out by integrating Bitcoin into DeFi without sacrificing decentralization. thUSD is not just a stablecoin; it brings the unique security and potential of Bitcoin and Ethereum to the DeFi markets,” said Threshold DAO’s Marketing Lead. It is a bridge that unites people with its fluidity and accessibility.” said.
According to the official statement, one of the prominent features of thUSD is its understanding of borrowing. Users will be able to take out loans against their Bitcoin and Ethereum without the burden of ongoing interest payments. The platform states that it will only charge a one-time loan origination fee of 0.5%, making it a cost-effective and long-term option for users who want to invest in their digital assets without selling them.
According to the statement, until recently Bitcoin could not be used in DeFi without relying on central intermediaries. The launch of the second generation of tBTC on the Threshold Network has unlocked new possibilities for Bitcoin holders.
*This is not investment advice.
