# Introduction: TensorUSD

TensorUSD is a reserved backed algorithmic native stablecoin secured by DMM (Decentralized Market Making) protocol on Bittensor blockchain. Ticker is $TUSDT, redeemable 1:1 for US Dollar. It is always protocol-level overcollateralized for pegging purposes.

<figure><img src="/files/H1a4NRJc5cWBCENtZG2H" alt=""><figcaption></figcaption></figure>

**Features of TensorUSD ($TUSDT)**

* **Native Stablecoin of Bittensor**: $TUSDT uses Bittensor for subnet architecture to maintain its pegging to $1 value.
* **Algorithmic Stablecoin**: The pegging to $1 is regulated algorithmically through subnet architecture, CR > LR liquidations and 3-token system ($TUSDT, $TAO and Subnet Alpha Token), also called Trinity Algo.
* **Game Theory of DMM**: TensorUSD uses Decentralized Market Making (DMM) protocol to operate the pegging mechanism with miners and validators. Compete and contribute more to maintain the pegging, that will generate more reward.
* **No bank-run, No Death Spiral**: $TUSDT is an algorithmic stablecoin, yet 100% protected from bank-run or death spiral. Autonomous circuit-breakers, circuit-recovery implemented on DMM protocol.
* **Real-time Audited**: TensorUSD keeps user deposited $TAO securely on in Asset Backing Collateral Vault (ABCV) with proceeds of liquidations.
* **Forever Stability**: Users are guaranteed $1 value of $TUSDT forever. Liquidation oracles keeps CR > LR all the time.
* **Solves Capital Fight from TAO:** During harsh volatile period, users are currently required to sell TAO to buy USDT or USDC through CEX, DEX or Bridges. TUSDT solves this capital flight problem of $TAO.&#x20;
* **DeFi, Liquidity, Lending, Borrowing:** TensorUSD keeps the liquidity of $TAO ecosystem within Bittensor to power up DeFi activities. Even TAO maximalists are enabled to pile up TAO (or particular Subnet Token) position through TUSDT lending/borrowing.

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