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Overview

trUSD is fully backed by the protocol’s reserve assets. The backing model is designed to maintain stability while enabling yield generation for strUSD holders through market-neutral trading strategies. Every trUSD in circulation is backed by real assets held in secure custody, verified in real-time by independent third parties.

How Backing Works

The Backing Model

Unlike fiat-backed stablecoins that hold dollars in bank accounts, Tori’s backing consists of assets deployed across various hedged positions and instruments:

How It Compares

Real-Time Transparency

All backing is independently verified and publicly accessible:

Proof of Reserves

Accountable

Independent, real-time attestations of all protocol reserves. Accountable provides cryptographic proofs that anyone can verify at any time.
What’s included in the attestation:
  • Total assets under management
  • Asset composition and allocation
  • Liability coverage ratio
  • Reserve fund status

On-Chain Verification

All on-chain components are publicly verifiable:
  • Smart contract balances
  • Token supply
  • Transaction history
  • Staking contract state

Custody Architecture

All assets are held in institutional-grade secure custody across two layers:

On-Chain Assets

Off-Chain Assets

Risk Management Framework

The backing model incorporates multiple layers of risk management:

Position-Level Controls

Portfolio-Level Controls

Reserve Fund

A portion of protocol revenue is allocated to a Reserve Fund that serves as an additional buffer against adverse conditions.

Verification

Anyone can verify the protocol’s backing:
1

View Proof of Reserves

Access real-time attestations from Accountable showing total assets and liabilities.
2

Check On-Chain Data

Verify smart contract balances and token supply directly on the blockchain.
3

Review Attestation Reports

Access detailed attestation reports for comprehensive backing information.

Next Steps

Peg Mechanism

How trUSD maintains its dollar peg

Reserve Fund

Additional protection layer

Strategy

How yield is generated

Risks

Understand all the risks