Profile
USSD profile facts
US Sonic Dollar (USSD) static profile: governance model Centralized (CeFi); backing model Real-World Asset Backed; peg US Dollar.
- Collateral
- Sonic frxUSD held 1:1 by the USSD BrandedCustodian contract on Sonic. USSD inherits frxUSD's upstream reserve exposure rather than directly holding Frax's tokenized Treasury and approved-stablecoin portfolio.
- Peg mechanism
- USSD is minted and redeemed 1:1 against Sonic frxUSD through Frax-derived permissionless contracts. Holders first unwrap USSD to frxUSD; any further redemption is through Frax or authorized providers, not directly with Sonic. Broader approved-asset and tokenized-Treasury routes belong to the upstream frxUSD reserve layer; cross-chain USSD additionally relies on its omnichain infrastructure. Sonic's USSD docs state minting carries no fee, and the BrandedCustodian's redeemFee parameter reads zero. USSD itself pays holders no yield: Sonic Labs's March 9, 2026 launch post says the yield from the backing assets is designed to flow back into the Sonic network, where it could support buybacks and ecosystem incentives as usage grows.
- Jurisdiction
- United States
- Proof of reserves
- Real-Time PoR by Frax Finance Reserve source
Source: Pharos registry profile fields. Live price, supply, reserve, liquidity, event, and safety data load in the interactive dossier on this page.
USSD quick answers
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What is US Sonic Dollar (USSD)?
USSD is Sonic Labs's permissionless 1:1 dollar directly backed by Sonic frxUSD and therefore inherits Frax's upstream reserve exposure. The static profile records its US Dollar peg mechanism as: USSD is minted and redeemed 1:1 against Sonic frxUSD through Frax-derived permissionless contracts. Holders first unwrap USSD to frxUSD; any further redemption is through Frax or authorized providers, not directly with Sonic.
Is USSD safe?
As of Nov 8, 2026, Pharos grades USSD C- (51/100) on its Safety Score. Pharos's reviews record that the issuer or an admin can freeze individual holders' balances, and any holder can use its reviewed redemption route. That is a middle-band grade: it meets baseline expectations but carries meaningful weaknesses. The grade moves as reserve, redemption, peg and control evidence changes; the live Safety Score on this page shows the current reading.
What backs USSD?
Pharos records USSD's reserves as of Oct 27, 2026 as 100% Sonic frxUSD held by the USSD BrandedCustodian. Reserve evidence: Real-Time PoR by Frax Finance. Pharos classifies the backing as Real-World Asset Backed.
Can USSD be frozen or blacklisted?
Based on tracked contract metadata and blacklist coverage, issuer or admin freeze controls are recorded.
How do you redeem USSD?
Under the route Pharos reviewed on Aug 12, 2026, any holder can redeem USSD for FRXUSD. Redemption settles atomically on-chain. The fee is variable or not fully published. Whether a given holder qualifies is set by the route's own terms, not by this summary.
