Tron Network to Launch Algorithmic Stablecoin USDD
On May 5, Tron developers will launch the USDD algorithmic stable coin backed by the native TRX token and the equivalent of $10 billion in highly liquid assets. About it declared Tron Foundation CEO Justin Sun.
USDD, according to the algorithm of its work, repeats the model tested by Terra Labs stablecoin UST. The structure of reserves is not disclosed.
“When the price of USDD falls below $1, users and arbitrageurs will be able to send 1 USDD into the system and receive the equivalent of $1 in TRX. When the price of USDD exceeds $1, it will be appropriate to convert the equivalent of $1 in TRX into 1 USDD. Regardless of market volatility, the protocol will maintain the stability of the USDD peg to $1 at a 1:1 ratio in a decentralized manner, using algorithms.”San explained.
In addition to Tron, the asset will be available on Ethereum and BNB Chain via the BitTorrent Chain cross-chain bridge.
The stablecoin will be managed by Tron DAO. According to Sun, the organization will provide an annual yield of USDD at the level of 30%.
It is supposed to cooperate with decentralized and centralized organizations to include a stablecoin in their products while maintaining a consistent interest rate policy.
Sun stressed that the USDD will protect private property rights by eliminating the possibility of freezing and confiscation.
The development of the USDD involves four phases: 1.0 Space, 2.0 ISS, 3.0 Moon and 4.0 Mars. Details are not given.
Terraform Labs founder Do Kwon has spoken out in support of the USDD.
“Decentralized economies deserve decentralized money – every blockchain will run on decentralized stablecoins,” he predicted.
. @trondao 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 dec. stable soon
👏 @justinsuntron https://t.co/R4xuwtva6O
— Do Kwon 🌕 (@stablekwon) April 21, 2022
Recall, in March 2021, Do Kwon accepted the challenge users for $11 million who questioned the stability of the price of LUNA, which ensures the stability of the UST.
In April UST by Terra bypassed Binance USD by Market Cap.
Previously speculation arose about the forthcoming launch of the USN algorithmic stablecoin in the Near network.
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