The Tron (TRX) blockchain will welcome USDD, its new algorithmic stablecoin

A new stablecoin native to the Tron (TRX) ecosystem

Justin Sun, the founder of the Tron (TRX) blockchain, announced on Thursday the arrival of a algorithmic stablecoin on this network. Responding to the name of USDD for β€œDecentralized USD”, this will be available from May 5th.

Its operation is reminiscent of the UST of the Terra (LUNA) blockchain from which it is strongly inspired and which became the third stablecoin by capitalization this week.

Indeed, the USDD will use the same arbitration system to maintain the 1:1 ratio with the dollar (the peg). Thus, when the price of the stablecoin of Tron falls below 1 dollar, it will then be possible to send USDD to the protocol so that it is burned and thus receive an equivalent sum in TRX. And vice versa in the other direction.

In addition, the USDD will also be supported by a store of value which should amount to 10 billion dollars. If Justin Sun did not detail the composition of it, he nevertheless declared that it will be a basket of liquid assets raised from investors.

The Tron DAO will oversee this pool and provide a 30% initial annual return.

This asset will be issued via the BitTorrent (BTT) protocol, initially on the Ethereum (ETH) and BNB Chain (BNB) blockchains.

πŸ‘‰ To go further – Discover our complete guide on what is a stablecoin

What next for USDD?

If the operation on which the USDD must be based has already proven itself thanks to the UST, this does not guarantee that it will be adopted and will meet with the same success. However, the news was greeted by Do Kwonfounder of the Terra blockchain:

This is not the first time that a stablecoin native to the Tron ecosystem has been under consideration. Something had been tried 3 years ago with the TRXD, collateralized in dollars, but it was a failure.

If the Tron blockchain enjoys a certain use today, it is partly thanks to the possibility of transfer USDT at low cost. It therefore remains to be seen if the USDD is only there to ride on the popularity of the UST or if it will be able to seduce investors by presenting real cases of application.

πŸ‘‰ Also in the news – Terra’s UST becomes the 3rd most capitalized stablecoin, ahead of BUSD

Source: Press release by Justin Sun

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About the Author : Vincent Mayor


I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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