This guide provides a technical overview for developers integrating Pax Dollar (USDP). We will focus on its regulatory foundation and standard ERC-20 implementation.
Step 1: The Regulatory Foundation
Before writing any code, understand the asset. USDP is issued by Paxos Trust Company USDP, which is a trust company chartered and regulated by the New York State Department of Financial Services (NYDFS). This makes it a NYDFS Regulated Stablecoin, a critical distinction for applications requiring high levels of compliance and security.
Step 2: ERC-20 Integration
USDP on Ethereum is a standard ERC-20 token. Integration is straightforward:
Contract: Interact with the official USDP smart contract address.
Functions: Utilize standard functions like transfer(), balanceOf(), and approve() for payments, wallets, and DApp integrations.
Security: Given its regulated nature, the Paxos USDP Security model includes the ability for the issuer to freeze tokens if required by law enforcement, a factor to consider in your application's design.
Step 3: Verifying Reserves
To build trust with your users, your application should provide a link to the official reserve reports. The question "Is USDP Safe?" is answered by the monthly USDP Reserve Attestation. These reports, conducted by independent accounting firms, prove that the asset is fully backed by US dollars and US Treasury bills.
Step 4: The Redemption Mechanism
The 1:1 peg of USDP is guaranteed by its redemption process. The ability to Redeem USDP for USD is handled directly by Paxos. Any eligible institution can mint or redeem the token directly with Paxos, ensuring the on-chain supply always matches the off-chain reserves.
For the official smart contract address and attestation reports, refer to the Full Official Documentation.
Top comments (0)