On April 21, Justin Sun, the founder of Tron, announced the launch of a decentralized algorithmic stablecoin called USDD. 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’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.
USDD will be pegged to the underlying asset, TRX, and issued in a decentralized 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.
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.
What do you think about Tron’s and Justin Sun’s new USDD stablecoin? Let us know what you think about this subject in the comments section below.
