Verified USD (USDV)
About
USDV is a tokenized real world asset-backed stablecoin pegged 1:1 to the US dollar, built on LayerZero's Omnichain Fungible Token standard for cross-chain interoperability. It is designed for global payments, capital markets, and trade, bridging CeFi and DeFi across multiple blockchain networks. The Verified USD Foundation announced in November 2024 that it is removing USDV from circulation and ceasing support by December 31, 2024.
Where Does Yield Come From?
USDV earns yield from the tokenized real‑world assets that back it. The main asset is STBT (Short‑term Treasury Bill Token), which holds US Treasury securities (with maturities under six months) and overnight reverse repurchase agreements. These low‑risk investments produce a return.
STBT uses a daily rebasing mechanism: its total supply adjusts each day to match the Net Asset Value of the underlying portfolio. This adjustment effectively distributes the earned yield to STBT holders. The USDV vault that holds STBT receives this rebase yield.
A portion of that yield is converted into USDV and passed on to Verified Minters—the KYC‑approved entities that help create USDV. The distribution is handled by the ColorTrace algorithm, which tracks how much each minter has contributed to the total USDV circulation and rewards them accordingly. This ensures rewards are fair and proportional to each participant’s share of the ecosystem.
When STBT rebases and its value increases, the protocol mints new USDV equal to that increase. A designated share of the newly minted USDV is allocated as minter rewards, while the rest helps maintain USDV’s 1:1 peg with the US dollar. In this way, yield from low‑risk US Treasury investments is passed transparently and fairly to the people who help grow the USDV ecosystem.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Paladin02-10-2025 |
| The audit revealed significant security concerns including critical accounting bugs and cross-chain messaging flaws, though most were resolved prior to deployment. Users must trust the multi-signature governance given the system's fully upgradeable nature and centralized control over critical functions. |
Zellic26-10-2023 |
| The audit uncovered several critical and high-severity authentication and cross-chain messaging vulnerabilities that could have allowed unauthorized control and disrupted system operations, all of which were fixed before deployment. The resolution of these issues prior to mainnet launch significantly improved the security posture of the USDV protocol. |
OtterSec02-10-2023 - 13-10-2023 |
| OtterSec's audit found and resolved two high-severity vulnerabilities that could block message processing, along with medium and low-severity issues, resulting in a comprehensive security review with all identified vulnerabilities patched before deployment. |
Chaos Labs01-11-2023 - 14-11-2023 |
| This pre-launch risk assessment identifies systemic and operational risks in USDV's architecture but does not enumerate specific security vulnerabilities, as smart contract auditing was explicitly out of scope and referenced to third-party security firms. |
Legal
Legal form
Company Limited (Verified USD Company Limited) as token issuer; Verified USD Foundation as not-for-profit independent entity
Registration jurisdiction
British Virgin Islands (governing law and arbitration location specified)
Status and notes
Token issuer is Verified USD Company Limited per Terms of Use. Verified USD Foundation described as not-for-profit independent entity accountable for USDV. Legal contact: [email protected]. Terms governed by British Virgin Islands law with arbitration in Road Town, Tortola, British Virgin Islands.