Introduced Tron Dao Reserve Answered Questions About USDD

Representatives of TRON DAO Reserve (TDR) have officially answered the community’s frequently asked questions about the USDD stablecoin. According to the developers, this cryptocurrency is a decentralized digital coin with collateral. According to the organization’s founders, USDD is the most reliable asset of this class in the cryptocurrency market, as it is not tied to US dollar (USD) reserves and is not under the strict control of regulatory authorities.

The firm spoke at length about how only institutions whitelisted by the TDR reserve are eligible to mint USDD. The value of the stablecoin is supported by an over-collateralization of highly liquid crypto assets consisting of Bitcoin (BTC), Tether (USDT), USD Coin (USDC), and TRON (TRX). This eliminates centralized intermediaries, so users do not have to worry about their funds being frozen or confiscated.

Officials stressed that USDC and USDT must maintain a 1:1 reserve ratio to the US dollar. USDD has a strict peg to USD. Instead, USDD price stability is supported by the monetary policy adopted by TDR based on market conditions.

The mechanisms used by the company provide additional flexibility to make the necessary adjustments if needed. This approach helps to avoid problems due to increased market volatility and allows you to maintain a stable exchange rate, as well as properly scale.

The TDR said it used four monetary policy tools to ensure the stability of the USDD. They set benchmark interest rates, operate open market operations (OMO), and provide window guidance and a mechanism to burn TRX and USDD coinage.