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docs: add pathUSD issuance & backing details #208

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10 changes: 7 additions & 3 deletions src/pages/protocol/exchange/quote-tokens.mdx
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Expand Up @@ -10,11 +10,15 @@ Each USD TIP-20 on Tempo can choose any other USD TIP-20 as its quote token—th

pathUSD is a USD-denominated stablecoin that can be used as a quote token on Tempo's decentralized exchange. It is the first stablecoin deployed to the chain, and is used as a fallback gas token when the user or validator does not specify a gas token. Use of pathUSD is optional.

### Motivation
### Issuance & Backing

While on other chains, most liquidity accrues to a few stablecoins, or even one, Tempo allows you to choose which stablecoin to use as your quote token. As one option, you can select pathUSD, a USD-denominated stablecoin. PathUSD is not meant to compete as a consumer-facing stablecoin. Use of pathUSD is optional, and tokens are able to list any other token as their quote token if they choose.
pathUSD is issued by Bridge and is backed 1:1 by high-quality USD-denominated reserves. Please see [bridge.xyz](https://www.bridge.xyz) for more about their reserve allocation practices. pathUSD can be minted by depositing USDC.e and redeemed back to USDC through Bridge.

pathUSD can also be accepted as a fee token by validators.
### Why pathUSD?

Tempo is designed to be neutral across stablecoin issuers. Rather than defaulting to any single issuer's stablecoin as the quote token, pathUSD provides a neutral option that any token can pair against on Tempo's DEX. This ensures that no single stablecoin issuer has a privileged position in Tempo's liquidity graph and guarantees stablecoin interoperability.

pathUSD is not meant to compete as a consumer-facing stablecoin. Use of pathUSD is optional, and tokens are able to list any other token as their quote token if they choose. pathUSD can also be accepted as a fee token by validators.

### Contract

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