TrueUSD Automated Attestations Paused Due To Auto Balance Error

Key Points:

Due to balance issues, TrueUSD automated attestations are currently on hold.
The ‘ripcord’ feature notifies users if an issue could affect the ability to generate certificates.
Previously, TUSD had to suspend Prime Trust-related redemptions and minting transactions.

According to Protos, TrueUSD halted automated attestations due to automated balance-related issues amid Prime Trust problems.

The System powered by Archblock for TrueUSD includes a “ripcord” feature that notifies users if issues could affect the ability to generate proofs. Currently, an active balance ripcord, which according to Archblocks means: “During the last reporting period, LedgerLens’ real-time reserve system received an error response resulting in greater total liability total underlying assets.”

According to the System, A ripcord is a pre-condition or requirement for a new attestation report to be generated by the LedgerLens Real Time Reserves system. In order for the System to develop a new attestation report at the “standard reporting interval,” no ripcords must be present or “triggered.”

TrueUSD ripcord. Source: Archblock

Usually, during the historical operation of the System, balance imbalances are triggered by temporary imbalances in normal operation, but balance imbalances can also be triggered by real imbalances of liabilities and assets, respectively.

This situation begins with a management requirement of the certification provider. In any case, the ripcord balance will expire after 72 hours. If there is still an imbalance after 72 hours and no other ripcord has been activated, the System will generate a new proof report showing the balance at the time the System obtained it.

Prior to that, TrueUSD had to halt acquisitions and minting related to Prime Trust, while Prime Trust is said to have agreed in principle to BitGo’s acquisition. TrueUSD has announced that other redemptions and minting avenues remain.

TrueUSD has played an increasingly important role in the crypto ecosystem, doubling its market capitalization since the start of the year. This is partly thanks to the increased use of Binance after the New York Department of Financial Services shut down Binance USD.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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