Justin Sun (the founder of Tron) announced that a new decentralized algorithmic stablecoin, USDD was being launched on 21 April. Sun said on Thursday that the USDD Network will “provide custody service for the $10 [billion] worth of highly liquid assets raised from blockchain industry initiators and use them as an early-stage reserve.”
Tron launches a Native Stablecoin, USDD
Justin Sun is a Tron Network member revealedA new stablecoin was issued using Tron’s blockchain. The announcement was also published on hejustinsun.com in a blog post called “An Open Letter on the Issuance of USDD, a Decentralized Algorithmic Stablecoin on Tron.” The letter explains how stablecoins have evolved from the “Omni-USDT 1.0 era” to decentralized algorithmic stablecoins. The blog post details that the Tron DAO has partnered with “major blockchain players” in order to launch USDD. The blog post further claims USDD will be “the most decentralized stablecoin in human history.”
Tron’s USDD launch follows the exponential climb of a few decentralized stablecoins. First Makerdao’s DAI propelled to the top spot in terms of market capitalization among stablecoin as it offers an over-collateralization method in order to keep its dollar peg. In more recent times, Terra’s UST has surpassed DAI’s market valuation and it also offers an algorithmic reserve method in order to keep its dollar peg. Terra’s UST is now the third-largest stablecoin project, as it commands a $17.89 billion market capitalization.
In fact, USDD operates an awful lot like Terra’s UST and Sun explainedIt will begin Thursday with $10 billion of crypto reserve support. “In the Stablecoin 3.0 era, USDD will not rely on any centralized institutions for redemption, management, and storage,” the blog post on hejustinsun.com notes. “In the Stablecoin 3.0 era, USDD will not rely on any centralized institutions for redemption, management, and storage. Instead, it will achieve full on-chain decentralization.” The blog post adds:
USDD will become pegged to TRX as the underlying asset and be issued in a distributed manner. When USDD’s price is lower than 1 USD, users and arbitrageurs can send 1 USDD to the system and receive 1 USD worth of TRX.
Do Kwon Terra Founder congratulates Tron DAO, Justin Sun
Twitter is used by many people. called Justin Sun’s and Tron’s new stablecoin a “UST lookalike,” Terra’s founder Do Kwon spokeAbout the comments made about USDD. “This should be obvious but – The more carmakers go electric, Tesla wins,” Do Kwon said. “Similarly, the more blockchains issue their own sovereign stablecoins, UST wins. The true moon will be found in helping as many communities become self sovereign as possible.”
Do Kwon sent another tweet congratulating Justin Sun, Tron DAO, and Justin Sun. Terra’s founder said:
Tron DAO is launching an algorithmic stablecoin with mint-and-burn mechanics called USDD – mint and burn TRX, redeem against TRX. Decentralized economies deserve decentralized money – every blockchain will run on [decentralized] stables soon.
Tron’s new stablecoin has been a topical conversationTweets will be shared on social media Thursday. USDD can be used to make and burn crypto coins and allow you to hold trillions in cryptocurrency reserves. suggestedThe project must also hold Bitcoin (BTC). Moreover, Sun’s tweet on Thursday further noted that the Tron DAO reserve will “set its basic risk-free interest rate to 30% per annum.”
What do you think about Tron’s and Justin Sun’s new USDD stablecoin? Please comment below on your views.
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