# USDV Overview

**Verified USD (USDV)** is the first stablecoin that rewards Verified Minters based on their contribution to the token's active circulation.

USDV is an omnichain fungible token currently available on Ethereum, BSC, Avalanche, Arbitrum, and Optimism.

## How USDV Works

USDV utilizes the [ColorTrace algorithm](https://docs.usdv.money/docs/concepts/coloring) to mark USDV tokens with a unique 'color' to identify who originally minted them and maintain that attribution as tokens circulate within the ecosystem.

**Verified Minters** earn yield by increasing the circulation of USDV in their color. As users interact with your contracts, more tokens of your color go into circulation. This increased circulation can increase the yield you receive.

Minters are incentivized to mint *and* circulate USDV, enhancing the liquidity and utility of the token in the broader blockchain landscape.

## Why use USDV?

USDV is the first stablecoin to fairly compensate ecosystem participants such as CeFi and DeFi protocols in proportion to the value they create.

* **Become a Minter:** Partners can [become a 'Verified Minter'](https://docs.usdv.money/docs/verified-minters/initial-kyc) with successful KYC, unlocking the right to mint USDV and access to real world yield.
* **Real World Yield Share:** The fungible token coloring algorithm [ColorTrace](https://docs.usdv.money/docs/concepts/coloring) enables transparent & fair yield sharing based on USDV circulation contributed by each 'Verified Minter'.
* **Always native:** ERC-20 compatible, USDV is built on the [Omnichain Fungible Token (OFT)](https://layerzero.network/developers) Standard, eliminating unofficial wrapped/bridged versions and liquidity fragmentation.
* **Next Level Transparency:** Full transparency from real time on-chain transaction tracking, reserve proofing to daily real world asset monitoring.

<figure><img src="https://2748992917-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F60HQBir8zL677R7V1bjd%2Fuploads%2FfCAprfs2eKIkr5LUGO1E%2Fusdv-architecture-2.png?alt=media&#x26;token=567b8dc6-7c7d-404c-8ea7-4e8d38546718" alt=""><figcaption><p>Verified Minters collect yield based on the quantity of USDV they minted.</p></figcaption></figure>

Bridging the best of CeFi and DeFi, USDV transcends borders, blockchains and operating hours.


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