Codugh, the platform that pays developers real-time micropayments for using their code, has developed its own version of stablecoin to deal with price volatility issues. “Codugh USD”, or CUSD, is a tokenized asset on the BSV blockchain designed specifically for small payments. It maintains a constant value of one hundredth of a US cent ($0.0001) to give Codugh users greater price security.
Fiat micropayments are online! 💰💵https://t.co/A0cK69buGl
—Codugh (@Codugh) August 11, 2022
The company also announced that it will increase the number of digital assets it supports for sales. Previously a BSV-only app, it will now include BTC, ETH, Litecoin (LTC), Stellar Lumens (XLM), Axie Infinity (AXS), and Tether (USDT).
In a blog post explaining the purpose of CUSD, Codugh said there was a need to find a more stable way to deliver micropayments, giving users “a fully fiat native experience while using blockchain under the hood.”
Codugh developed CUSD to solve one of the biggest issues with blockchain adoption: price volatility. The world has near-endless uses for a fast and secure digital micropayments network, but would-be users are often put off by wild fluctuations in value, which impact income and savings. It’s a symptom of the industry’s focus on speculating and trading asset prices, rather than creating practical applications.
For those who actually develop practical applications, like Codugh, it is necessary to find creative solutions to this problem. The blog post says:
“CUSD enables the same low-cost instant microtransactions that crypto allows, while being immune to price volatility. CUSD users don’t need to understand crypto or deal with it directly, anything they see when moving money is US dollars.
CUSD in Codugh’s product suite and possibly third-party projects
Speaking to CoinGeek, Codugh co-founder Shashank Singhal said he hopes CUSD “will solve the biggest of our current problems and allow us to grow more aggressively.”
CUSD itself is a native BSV token running on the STAS protocol. It allows Codugh to price all of its API services in USD and its users to hold balances in USD. CUSD can currently only be used on the Codugh platform, and users can select their favorite digital assets to withdraw to external wallets.
Codugh has invited other projects to use CUSD in their own products and is looking to expand the micropayment fiat token to other areas of its product suite.
Singhal said the company is exploring a variety of solutions across several different microtransaction use cases. This could hopefully include a microtransaction payment processor, cloud storage, compute services, and IoT-centric solutions.
While other stablecoins already exist, they are denominated in whole cents, which makes them impractical on platforms like Codugh’s. The system works by sending micropayments to developers whenever their code is used in other apps. Unlike other code libraries and API marketplaces, it has to make these payments in real time. This is so that developers (who often write their code part-time or in between other jobs) don’t have to wait weeks/months for fiat payment methods to accrue enough value for the transaction. worth it.
Maintain the micro-dollar value of CUSD
The current version of CUSD is more “stablecoin-like” than a true stablecoin of the type we are used to seeing on the blockchain. Issues common to all of these assets include the need to maintain a fixed price and the method for doing so.
Singhal said Codugh’s BSV reserves are currently supporting CUSD’s $0.0001 peg and notes that the company has “large BSV reserves ready to deploy in the event of significant price swings.” However, the attachment should be more formalized if it becomes more widely used.
“We intend to move towards appropriate fiduciary reserves in the coming months. Currently, CUSD can only be used on the Codugh Platform to consume our products and services. Until we have operational fiat reserves and have appropriate plans in place regarding fiat anchor verification, we will not allow the transfer of CUSD outside of the Codugh platform. Our BSV reserves go far beyond what we expect our users to hold in CUSD for the foreseeable future. »
One of the greatest strengths of the BSV blockchain is its ability to process fast micro and even nano-payments at a price that makes those payments realistic. This is impossible on fiat payment networks without payment aggregation, and the high fees on other blockchain networks like BTC make on-chain micropayments just as difficult.
CUSD intends to combine this strength with more recognizable (and stable) dollar values by also leveraging BSV’s token asset capabilities. BSV creates completely new business models for the digital age with billions of micropayments. Systems such as Codugh’s help fill the gaps in blockchain experience and knowledge for users while providing an additional layer of price security.
Watch: BSV Global Blockchain Convention Panel, Small Payments, Big Fun: Micropayments for Casual Games
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