Tron’s Justin Sun Reveals Decentralized Algorithmic Stablecoin USDD

Tron"s Justin Sun Reveals Decentralized Algorithmic Stablecoin USDD

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 against TRX. Decentralized economies deserve decentralized money – every blockchain will run on [decentralized] stables soon.

Tron’s new stablecoin has been a topical conversation on social media on Thursday. While USDD will allow people to mint and burn with TRX and hold billions in crypto reserves, some people suggested the project should hold bitcoin (BTC) as well. 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.” Tags in this story 30% APY, Algorithmic stablecoin, DAI, do kwon, justin sun, Justin Sun stablecoin, makerdao, Omni Layer, Omni-USDT 1.0 era, sovereign stablecoins, Terra"s Founder, Tether, tron, Tron (TRX), Tron DAO, Tron Stablecoin, trx, USDD, USDT, UST, UST lookalike

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. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Moonbirds NFT Sales Skyrocket Capturing $364 Million in 5 Days NEWS | 2 hours ago Square Enix Insists on Integrating Blockchain Elements Into Its Games NEWS | 21 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMetaGods NFT Land Sale’s Resounding Success Attracts Traditional Investors Next articleMoonbirds NFT Sales Skyrocket Capturing $364 Million in 5 Days Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike