Question 1

What is $U?

Accepted Answer

$U is a blockchain stablecoin issued by United Stables Limited, designed to keep the value of each token close to US$1. It is positioned as a settlement asset for trading, payments, and on-chain financial activity; “close to US$1” is a peg target, not an unconditional guarantee of the execution price on any trading venue. A stablecoin’s uses depend on the networks, wallets, applications, and trading venues that support it. Even if the token’s reference target is the U.S. dollar, users buying and selling on secondary markets are still trading with other market participants, and the actual price may be above or below US$1.

Question 2

How does $U maintain its relationship with the U.S. dollar?

Accepted Answer

$U targets an approximately 1:1 relationship with the U.S. dollar and is supported by the qualified reserve arrangements described in its white paper, including cash, U.S. Treasury securities, and/or fiat-pegged stablecoins. The economic role of reserves is to provide a corresponding asset basis for issued tokens; this design does not itself mean that secondary-market trades will always execute at US$1. Whether the peg remains close to the target in actual trading also depends on the availability of issuance and redemption mechanisms, the willingness of market participants to trade, and relevant operating conditions. United Stables’ terms expressly state that market prices are not guaranteed, so “reserve backing,” “a 1:1 target,” and “the execution price at a particular moment” should be understood separately.

Question 3

How is $U issued and redeemed?

Accepted Answer

According to the white paper, $U can be minted on designated blockchains and sent to whitelisted wallets; the institutional minting and redemption process includes a partnership application and KYB (Know Your Business) review. Whitelisting and review determine who can receive newly minted tokens or apply for redemption through this process, rather than allowing every on-chain address to access the same channel directly. The process can be summarized as follows: an applicant first meets the partnership and KYB requirements; under the qualified reserve arrangement, the issuance process mints tokens on designated chains; the tokens then enter approved wallets. Redemption is the corresponding exit path to minting, but whether it is available, who it applies to, and its specific conditions depend on the issuer’s rules and review results at that time.

Question 4

What is the role of $U’s proof of reserves?

Accepted Answer

Proof of reserves is intended to let external participants verify the assets backing $U on-chain in real time or near real time. It provides an information mechanism for checking reserve conditions, rather than an automatic guarantee of price, liquidity, redemption eligibility, or any usage outcome. When reading such proof, it is necessary to distinguish the point in time shown by the proof, the scope of assets disclosed, and whether it covers the specific conclusion a user is concerned with. It can help users understand how the issuer improves verifiability, but it cannot replace an assessment of the terms, available redemption channels, and counterparty risk.

Question 5

How can ordinary users use $U?

Accepted Answer

Ordinary users can use $U for transfers, trading, payments, or on-chain settlement on networks or applications that support it. When operating, first confirm the network and token version supported by the recipient; once a token transfer is confirmed on-chain, it generally cannot be unilaterally reversed by the issuer or application. Acquiring $U through a secondary market is a different path from using an institutional minting or redemption channel. The execution price and liquidity of the former are determined by the market; the availability of the latter is affected by conditions such as partnership status, whitelisting, and KYB. Holding tokens does not automatically mean having direct redemption eligibility.

Question 6

What risks should be considered when using $U?

Accepted Answer

Using or trading $U does not mean obtaining a government guarantee, deposit insurance, or a fixed secondary-market execution price. Its terms describe $U as a blockchain digital asset rather than legal tender, and expressly state that its market price is not guaranteed to remain at US$1 at all times. Actual risks arise at multiple stages: market buying and selling may deviate from the peg target; transfers to incompatible networks or addresses may be difficult to recover; and whether minting or redemption channels apply is also subject to eligibility and process conditions.

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Price of United Stables (U) Today in USD