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 to Launch a Native Stablecoin Called USDD
Justin Sun from the Tron network has revealed a new stablecoin issued on top of the blockchain Tron. 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 explained on Thursday it will be backed by $10 billion in crypto reserves to start. “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 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.
Terra Founder Do Kwon congratulates Tron DAO and Justin Sun
While a number of individuals on Twitter called Justin Sun’s and Tron’s new stablecoin a “UST lookalike,” Terra’s founder Do Kwon spoke about the comments directed at 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.”
In another tweet, Do Kwon congratulated the 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…
Read Full Story At: Bitcoin News.