Intro
This is the first State of PUSD, a recurring report on how the protocol is doing: the numbers, what we shipped, and what we’re working on next. A lot has happened since launch day at the end of April, and while we’ve posted updates on Telegram and X along the way, none of it made it onto the blog. This post catches everyone up, and from here we intend to keep it regular.
The short version: ParyonUSD launched into one of the toughest environments a BCH-backed stablecoin could ask for, and the protocol held up well.
BCH halved. The peg held.
ParyonUSD went live on mainnet on April 30th with BCH trading around $450. Over the following eight weeks BCH fell to roughly $190, a drawdown of about 60% from its early-May high near $470, measured on the oracle price.
That is close to a worst-case opening scenario for a CDP stablecoin. Every loan in the system is backed by the asset that was falling, and it fell by more than half within the first two months of operation. Here is what happened:
- The peg held. Across 135 daily periods with a recorded market price, taken as the Cauldron rate valued at the BCH/USD oracle price, PUSD traded within 1% of a dollar in 95% of them, and within half a percent in two thirds. The widest excursions in the entire history were $0.990 on the low side and $1.049 on the high side. That high came on June 3rd, in the middle of the crash, when PUSD was in demand.
- Liquidations worked as designed. The protocol’s only liquidations came in a single four-day window in early June: 34 loans, clearing 16,824 PUSD of debt against 78.6 BCH of collateral, all absorbed by the stability pool.
The design was tested in public in its first weeks, with real money on the line, and it passed.
Supply and TVL contracted, then recovered
The crash moved supply and TVL as well as the price. PUSD supply peaked at about 436,000 PUSD on May 6th and fell to roughly 205,000 by June 1st as borrowers closed out and PUSD holders redeemed into BCH at the new, more advantageous rates.
It has since recovered to around 318,000 PUSD and settled there: supply has held a 300-335K band and TVL a 2,400-2,600 BCH band since early June, largely independent of what BCH did in that time. A protocol whose supply and TVL stay put through that kind of price action is doing its job.
Volatility is exactly the problem
BCH did not fall alone: between May 5th and June 23rd, Bitcoin, Litecoin and Ethereum all fell somewhere between 20% and 30%. This was a broad crypto downtrend, not something peculiar to Bitcoin Cash. But BCH fell more than twice as hard over those same weeks, and it has recovered far less since: Bitcoin has clawed back most of its drawdown, while BCH is still down more than 60% on the year.
Anyone holding BCH through those weeks lost more than half of their purchasing power. Anyone who swapped BCH for PUSD kept it. Nobody should have to choose between staying in the Bitcoin Cash ecosystem and keeping the value of what they hold, and a BCH-backed stablecoin is how you get both.
Where things stand today
As of September 14th 2026. This is a snapshot; the live versions are always on stats.paryonusd.com.
| PUSD supply | 317,970 PUSD |
| Collateral locked | 2,556 BCH (~$570,000) |
| System collateral ratio | ~179% across all loans |
| PUSD price | $1.00 |
| Active loans | 137 |
| Loans opened since launch | 893 |
| PUSD staked | 155,525 (49% of supply) |
| Unique stakers | 40 |
| Median borrowing rate | 2.00% today, mostly 1.5% to 6.5% since launch |
| Cauldron PUSD/BCH liquidity | ~119,000 PUSD + 534 BCH |
Two things in and around those numbers deserve a comment.
Half of all PUSD is staked. 49% of supply sits in the stability pool earning liquidation proceeds and interest. That is a very high participation rate, and it is why liquidations have been absorbed so smoothly: there has always been far more staked PUSD than any liquidation needed. You can follow the pool epoch by epoch on the staking stats.
Redemptions do the heavy lifting. Redemptions went live on May 8th, and 1.42 million PUSD has been redeemed for BCH since, roughly 4.5x the current supply. In the designs we took inspiration from, redemption is an occasional corrective arbitrage near the peg floor; for PUSD it has become a primary off-ramp, used continuously whether PUSD trades at a discount or a premium. Knowing you can always exit at a predictable price is a big part of why the floor under the peg has held so well.
Every redemption is listed on the redemptions page if you want to watch the flow yourself.
If the peg holding is the headline of our first months, the redemption data is the most interesting thing underneath it: a far more active redemption regime than those designs anticipated.
What we shipped since launch
For users
- Repay from collateral. Borrowers can now repay debt directly out of their loan’s collateral through a Cauldron swap, instead of withdrawing collateral, swapping manually, and repaying, which cost users real money in fees and slippage.
- Launch restrictions lifted. New loans needed 180% collateral at launch, a deliberate buffer while the stability pool was still growing. We relaxed that to 140% in May, and in August dropped the launch-phase framing altogether: the dapp now simply states its safety margin, and says plainly that the margin is set by the dapp rather than the protocol, which only liquidates at 110%.
- Cauldron comparison on the redemption screen. Redemption now shows you what the same trade would cost via Cauldron, so you can take the cheaper route instead of guessing.
- Richer loan and history views. Collateral ratios on history entries, liquidation-price previews in the collateral modal, redemption-risk badges for loans near the front of the queue, at-risk loans surfaced first, debt-in-front and system rate stats on loan details.
- The stats site grew up. stats.paryonusd.com has been built out steadily since launch: live protocol stats, redemption volume over time, a staking view that breaks down where each payout came from, and an activity feed covering every loan, stake, redemption and liquidation.
- DeFiLlama listing. PUSD is now tracked on DeFiLlama, alongside the rest of Bitcoin Cash DeFi.
Behind the scenes
- Contracts v1.0, published to npm. The contracts have been open source since before launch. What’s new is that v1.0 now ships as a public npm package,
@paryonusd/contracts, so anyone can install the compiled artifacts and build against the protocol directly. It also brought the contracts onto CashScript v0.13, which made them simpler to read. - Formal verification of the contracts. On top of the audits, we built a proving setup that rules out anyone taking control of the protocol’s privileged tokens, no matter what transaction they construct.
- Staking reporting rebuilt. The staking figures we show are now exact rather than estimated. We replay the pool’s real composition at every epoch boundary, withdrawals included, so past payouts are reported precisely and the APY comes from payouts that already happened rather than a projection. The on-chain payouts themselves are unchanged; this is about the accuracy of the numbers we display.
Cashonize, the recommended wallet for PUSD
On Bitcoin Cash a dapp never holds your funds: every action is approved in your wallet. That makes the wallet half of every ParyonUSD interaction, which is why we put ongoing work into Cashonize, the recommended wallet for PUSD. Two additions this summer matter most for PUSD holders:
- WizardConnect support. Over WalletConnect an HD wallet has to nominate a single address for the dapp to see, and picking the wrong one is easy. WizardConnect works with your whole wallet instead.
- Portfolio view. Cashonize values your BCH, tokens and DeFi positions together, with your ParyonUSD loans and stakes counted directly in it, so you can see your real net position at a glance.
What’s next
Four and a half months in, the question that most needed answering has been answered: PUSD holds its peg and its solvency when its collateral asset halves. The data answers it, not us.
The work ahead is making PUSD easier to use and easier to swap into and out of: deeper liquidity so trades are cheap, more places across the BCH ecosystem to hold and spend it, and a borrowing experience that takes care of itself.
WizardConnect interest management. Quite a few of you have asked for this one, and it’s what we’re building next. Loans are redeemed against lowest interest rate first, so the rate you set decides how exposed you are to redemption. An interest manager watches the rest of the book for you and keeps your rate high enough to stay out of the queue, without paying more than you need to. That delegation is not available over WizardConnect today, so loans opened that way have to manage their own rate. Adding it is what will make HD wallet users truly first-class in the dapp, and it will work with any wallet that supports WizardConnect, Cashonize and Paytaca included.
Open-sourcing the library. We want third parties to be able to build on ParyonUSD directly: redemption arbitrage bots, their own interest-manager services, and integrations we haven’t thought of. Opening up the ParyonUSD TypeScript library is how that happens, and every one of those makes the protocol healthier. That comes once we have hardened our own infrastructure.
The other half of the job never finishes. The transaction service, the API service, the interest manager, our indexers and monitoring all have to keep running every period, ideally without anyone ever noticing them. Hardening that infrastructure, scaling it as history accumulates, and staying current as security research moves fast is an ongoing effort. We are building ParyonUSD to be around for the long term.
Join the Conversation
We’ll publish one of these regularly, with the numbers whether they’re good or not. And if you would rather watch than read, we presented ParyonUSD at BLISS in May.
- Follow ParyonUSD on X: x.com/ParyonUSD
- Join the ParyonUSD group on Telegram: t.me/ParyonUSD
In our Telegram group you can engage directly with the team - ask questions, share your thoughts, and be part of the ongoing conversation as we build ParyonUSD together!