↙️ Back to Core Concepts

Censorship resistance is a core feature of Trustless protocols.

Hue is a standard ERC-20 contract, meaning that there are no functions that can freeze or burn Hue from a user account. Compare this to the USDC and USDT contracts, both of which have the ability to blacklist addresses from transferring tokens thereby freezing their value.

TCP only ever accepts Eth as collateral. Compare this to Compound, Aave, and Maker, all of which have allowed numerous additional collateral types. This means that if any one of those collateral tokens is insecure, someone could mint infinite tokens and borrow as much dai as they want, and sell it into the market for other assets, cratering the value of Dai. This is not possible with Eth.

TCP only uses fully decentralized price oracles based on immutable Uniswap V3 price pools, which give the true market price through a time weighted average price (TWAP). Compare this to Compound, Aave, Maker, and Liquity, all of which rely on a limited set of trusted actors for prices. These actors could collude at any time to manipulate the price of debt to collateral and steal all value through the normal liquidation mechanism.

Keep Learning Core Concepts

Censorship Resistant (this page)

Trustless Mechanisms

Hardcoded Decentralization

Community Owned

Unique Features