Tron Blockchain has been named the third-largest decentralized finance protocol network (TVL) this week. Interestingly, 48.19% of the TVL is held by the defi protocol Justlend, an application that’s similar to Anchor Protocol as it offers more than 20% APY for USDD deposits. Amid Tron’s TVL rising, the network’s stablecoin USDD has been confronted by skeptics over the similarities USDD holds with Terra’s UST.
Tron takes the Third-Largest Place in Total Value Locked In Decentralized Finance Protocols
Tron became the third largest defi chain in terms of total locked value on May 30, 2022. At the time of writing, Tron’s TVL in defi is $5.94 billion, which is just below the Binance Smart Chain (BSC) TVL and above the Avalanche (AVAX) TVL.
Amid the Terra LUNA and UST fallout, on May 12, 2022, Tron’s TVL was $3.97 billion and the blockchain was ranked number five in terms of TVL size by chains. On that day, Tron’s TVL was down 16.16% lower than it was on May 5, but after the Terra fiasco subsided, Tron claimed the third position in terms of TVL in defi.
This month, Tron’s defi TVL increased 45.22% and over the last seven days, as it has risen by 13.73%. Tron’s TVL is dominated by a defi protocol called Justlend, as 48.19% of Tron’s aggregate held in defi is hosted on the Justlend application. Justlend holds $2.86 billion in value, and this has grown a lot since May 21.
$1.08 billion was added to Justlend since May 21, as the protocol’s TVL increased by 58% since then. Certik, a blockchain security firm, audited Justlend. Justlend, like Anchor, offers USDD deposits at 23.55% APR as of the date this article was written.
Sunswap, Juststables, and Sunswap are other noteworthy Tron defi application. Juststables holds a TVL balance in excess of $1.41 trillion, while Sunswap is locked at just over a billion. USDD is also the 9th largest stablecoin of all fiat-pegged tokens.
The Tron stablecoin’s market valuation today is $603 million and it has seen $179.6 million in 24-hour global trade volume. Statistics from Cryptocompare indicate that USDT and USDC are USDD’s top two trading pairs. Tron’s new algorithmic stablecoin USDD and the APY on Justlend is arguably eerily similar to the products once offered by Do Kwon, Terraform Labs (TFL), and Anchor team.
Tron’s USDD Stablecoin Faces Numerous Critics and Skeptics
Many critics agree. said “USDD is doomed to fail,” and there’s a litany of criticismThe project is so similar to UST. Bennett Tomlin (data scientist) has said that USDD was not an algorithmic, fiat-pegged token idea.
“As far as I can tell USDD is not an algorithmic stablecoin,” Tomlin said. “The only interaction that the TRD members can do is to burn TRX to get USDD. I see no contract to go the other way, and no algorithm adjusting either mechanism, except that minting depends on oracle price of TRX.” Tomlin added:
The algorithm in Terra, which was nominally used to refill the AMMs in the market module, is what they lied about a lot. This doesn’t seem to have an algorithm at all.
Tron, despite speculation and criticisms, has been a strong contender in the decentralized financial world. Furthermore, Tron’s native token tron (TRX) has managed to climb to the 14th position in terms of the largest market caps in the crypto economy.
Tron was able to halt most of the market chaos, even though bitcoin (BTC), Ethereum (ETH) and other currencies suffered weekly losses for nine consecutive weeks. Over the last month, TRX rose by 14.7% and is now at 30.5% compared to the U.S. Dollar.
Do you agree with Tron being the third largest decentralized finance institution in today’s world in terms TVL? Please comment below on your views.
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