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    PayPal USD

    PYUSD

    Evaluation Score

    Overall rating on a scale of 0-10

    RiskReturn
    06.010
    Risk Level:
    Medium
    Recommendation:Hold
    Evaluated:May 12, 2025 (v2)

    Crypto Token Health Score Explained

    Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.

    AI Analysis

    Comprehensive evaluation of the token

    PYUSD (PayPal USD) Overall Evaluation

    PYUSD is a 1:1 USD–backed stablecoin issued by PayPal in partnership with Paxos, offering strong regulatory oversight, daily third-party attestations, and seamless integration into PayPal’s 400 million+ user network. Security is robust (Etherscan-verified contracts, Withum attestations), but development is fully closed-source and lacks public road-maps or community governance. While tokenomics and use cases align with market leaders (USDC, USDT), the highly centralized issuance model and minimal grassroots community support introduce counterparty and governance risks. In a saturated stablecoin landscape, PYUSD’s brand trust and on/off-ramp convenience give it an edge for payments and DeFi liquidity, but it remains subject to evolving regulatory scrutiny.

    Detailed Analysis by Category

    Development Activity

    Code updates and developer engagement

    RiskReturn
    02.010

    Community Support

    Social media presence and community engagement

    RiskReturn
    03.010

    Tokenomics

    Supply, distribution, and utility

    RiskReturn
    07.010

    Market & Use Case

    Value proposition and competitive landscape

    RiskReturn
    07.010

    Team & Governance

    Team background and project governance

    RiskReturn
    07.010

    Security & Audits

    Security history and audit status

    RiskReturn
    09.010

    About PayPal USD (PYUSD)

    PayPal USD (PYUSD)

    Symbol: PYUSD
    Type: USD-pegged Stablecoin
    Blockchain: Ethereum (ERC-20)

    Overview

    PayPal USD (PYUSD) is a US dollar–backed stablecoin issued by PayPal in partnership with Paxos Trust Company. PYUSD combines fiat stability with blockchain efficiency, enabling seamless on-chain transfers, merchant settlements, and decentralized finance (DeFi) integrations.

    Key Features

    • 1:1 USD Backing: Each PYUSD token is fully collateralized by US dollar deposits, short-term U.S. government securities, and cash equivalents held in reserve.
    • ERC-20 Standard: Built on Ethereum to ensure broad compatibility across wallets, exchanges, and smart-contract platforms.
    • Transparent Reserves: Daily third-party attestations confirm full collateral backing.
    • Fast & Cost-Efficient: On-chain settlement reduces transaction fees and speeds compared to traditional payment rails.
    • Regulatory Compliance: Issued under regulatory oversight to meet stringent compliance and security standards.

    Use Cases

    • Cross-Border Payments: Move USD-pegged tokens globally with minimal friction and low fees.
    • Merchant Settlements: Accept PYUSD for e-commerce, invoicing, and on-chain billing solutions.
    • DeFi Access: Provide liquidity, participate in yield farming, and trade stablecoins on decentralized exchanges.
    • Digital Asset Management: Hold and transfer a stable asset alongside other cryptocurrencies within PayPal’s digital wallet.

    Technology & Security

    • Ethereum Network: Leverages Ethereum’s robust security, decentralization, and smart-contract ecosystem.
    • Smart Contract Audits: Regular security reviews ensure contract integrity and risk mitigation.
    • Reserve Transparency: Public attestations by an accredited auditor validate reserve holdings.

    Getting Started

    1. Log in to your PayPal account.
    2. Navigate to the Crypto section and select PayPal USD (PYUSD).
    3. Buy, hold, send, or redeem PYUSD with any ERC-20 compatible wallet.

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