What is Lift Dollar (USDL)?

Lift Dollar (USDL) is a stablecoin issued by Paxos Issuance MENA Ltd. (Paxos International) that distributes the yield from reserve assets to token holders. Subject to FSRA’s strict regulations, USDL is backed by cash and cash-equivalent assets and employs a daily rebasing mechanism to distribute yield. This mechanism automatically increases the token supply based on the yield rate of reserves, allowing users’ balances to grow without requiring any action. USDL aims to set a new standard in the stablecoin world by offering transparency, regulatory compliance, and a user-friendly economy. Yield distribution is not guaranteed but is optimized through conservative reserve management.

Lift Dollar (USDL) Key Features

USDL offers distinctive features in the stablecoin ecosystem:

1. Yield-Bearing Stablecoin

Yield from reserve assets is distributed daily to eligible token holders via a rebasing mechanism.

2. Regulatory Oversight

Strictly regulated by the FSRA, with reserve assets held in legally segregated accounts.

3. Transparent Reserve Management

Reserve assets consist of cash, U.S. government securities, and cash equivalents, verified through monthly independent audits.

4. One-to-One Redemption

USDL can always be redeemed from Paxos International at a 1:1 ratio for U.S. dollars.

5. Technological Innovation

As an Ethereum-based ERC-20 token, it ensures secure and transparent yield distribution through smart contracts.

6. Legal Safeguards

Reserve assets are held in segregated accounts for the benefit of token holders, in compliance with FSRA regulations.

7. Access Restrictions

Not available to users in the U.S. or certain prohibited jurisdictions, ensuring regulatory compliance.

How Does Lift Dollar (USDL) Work?

USDL operates as a yield-bearing stablecoin with the following process:

1. Acquisition: Eligible businesses can acquire USDL through Paxos International using fiat or other stablecoins; it is also available on global exchanges.

2. Yield Distribution: The rebasing mechanism increases token holders’ balances daily based on reserve yields.

3. Usage: USDL can be used like other stablecoins for payments, savings, or trading.

4. Redemption: Token holders can redeem USDL for U.S. dollars at a 1:1 ratio from Paxos International.

5. Reserve Management: Cash, U.S. government securities, and cash equivalents are stored in FSRA-approved financial institutions.

6. Auditing: Monthly independent audit reports verify the transparency and compliance of reserves.

7. Security: Transaction monitoring with Chainalysis and smart contract audits by Certik and Trail of Bits enhance security.

Lift Dollar (USDL) Benefits to Stakeholders

• Token Holders: Increase their balances through yield and benefit from the ease of stablecoin usage.

• Businesses: Optimize treasury management with seamless fiat and stablecoin conversions.

• Investors: Gain yield from a transparent and regulated stablecoin ecosystem.

• Financial Institutions: Offer secure and innovative services through USDL integration.

Lift Dollar (USDL) Tokenomics

USDL is a fixed-value ERC-20 token:

• Token Name: Lift Dollar (USDL)

• Token Type: Stablecoin (Governance and Yield Distribution)

• Total Supply: Variable, based on reserve assets

• Reserve Assets:

  • Cash (in segregated bank accounts)

  • U.S. government securities with three months or less maturity (minimum AA- credit rating)

  • Overnight reverse repurchase agreements collateralized by U.S. government securities

  • U.S. government money market funds with 60-day WAM and 120-day WAL

• Use Cases:

  • Yield Distribution: Sharing reserve yields via rebasing.

  • Payments: Transactions for payments and money transfers.

  • Redemption: One-to-one redemption for U.S. dollars.

  • Trading: Transactions on global exchanges.

Lift Dollar (USDL) Roadmap

USDL follows these steps to strengthen the stablecoin ecosystem:

• 2024: USDL launch and distribution on the Ethereum network, compliant with FSRA regulations.

• Future: Expansion to additional blockchain networks and optimization of yield distribution processes.

Lift Dollar (USDL) Investors and Partners

USDL is supported by Paxos International and collaborates with partners like Chainalysis, Certik, and Trail of Bits. Chainalysis provides transaction monitoring and risk assessment, while Certik and Trail of Bits enhance security through smart contract audits. Paxos International works with financial giants like PayPal, Mercado Libre, and Mastercard to expand stablecoin access.

Lift Dollar (USDL) Team

USDL is managed by Paxos Issuance MENA Ltd. (Paxos International), regulated by the FSRA in the Abu Dhabi Global Market. The company operates with an experienced treasury and portfolio management team and is recognized for its leadership in transparent reserve management and regulatory compliance.

Official Links

• Website
• X (Twitter)
• Whitepaper

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Through this collaboration, Stacks and ADGM aim to facilitate smoother access for institutions and investors to the burgeoning Bitcoin economy, while establishing new standards in regulatory clarity and technical advancements. According to Kyle Ellicott, Executive Director of Stacks Asia DLT Foundation, this partnership will play a crucial role in accelerating Bitcoin adoption in the region.

Strengthening Bitcoin’s Position in the Middle East and Asia

In his remarks, Kyle Ellicott emphasized the significance of ADGM, a leading global financial center located in the heart of the United Arab Emirates. Ellicott noted that ADGM is known as the “Capital of Capital”, bringing together financial innovation and investment to influence the future of the financial sector.

The partnership will create opportunities for increased real-world adoption of Bitcoin-powered applications and the development of regional developer communities through targeted educational initiatives.

Starting in May, Stacks Foundation will host a series of live and virtual events aimed at equipping institutions with the knowledge to integrate Bitcoin into their operations. Ellicott also stressed the importance of these events in unlocking opportunities related to productive Bitcoin capital.

Advocating for Progressive Global Bitcoin Regulations

As the leading scalability solution for Bitcoin, Stacks is also pushing for progressive global regulations that will secure Bitcoin’s role in the financial landscape of the future.

“We are not just focused locally — our team is actively engaged in global discussions, advocating for regulatory frameworks that balance decentralization, security, innovation, and compliance in unlocking Bitcoin capital,” said Ellicott, emphasizing Stacks’ involvement in global regulatory developments.

The foundation’s strategy includes knowledge-sharing with local regulatory bodies to enhance the understanding of Bitcoin’s characteristics and its potential economic impact among government officials.

Introducing the Bitcoin Capital Activation Framework

In addition, Stacks Foundation is working on the Bitcoin Capital Activation Framework, a comprehensive policy proposal designed to help regulators enable Bitcoin’s broader use across different regions. This initiative aims to guide global regulators in facilitating Bitcoin’s efficient application.

The Bitcoin Policy Bridge will also be launched in May, bringing together regulators from key regions across the Middle East and Asia. This group is expected to drive forward key advancements in Bitcoin adoption and regulatory standards.

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