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

דזשאַסטין Sun from the Tron network has גילוי a new stablecoin issued on top of the blockchain Tron. The מעלדן 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 דערקלערט 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, טרקס, 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 טרקס.

Terra Founder Do Kwon congratulates Tron DAO and Justin Sun

While a number of individuals on Twitter גערופן Justin Sun’s and Tron’s new stablecoin a “UST lookalike,” Terra’s founder Do Kwon שפּיזל 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 האט:

Tron DAO is launching an algorithmic stablecoin with mint-and-burn mechanics called USDD – mint and burn טרקס, redeem against טרקס. Decentralized economies deserve decentralized money – every blockchain will run on [decentralized] stables soon.

Tron’s new stablecoin has been a אַקטואַל שמועס on social media on Thursday. While USDD will allow people to mint and burn with טרקס and hold billions in crypto reserves, some people סאַגדזשעסטיד the project should hold bitcoin (בטק) 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.”

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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.

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Jamie Redman איז די נייַעס פירן ביי Bitcoin.com News און אַ פינאַנציעל טעק זשורנאַליסט לעבעדיק אין פלאָרידאַ. Redman איז אַן אַקטיוו מיטגליד פון די קריפּטאָקוררענסי קהל זינט 2011. ער האט אַ לייַדנשאַפט פֿאַר ביטקאָין, אָפֿן-מקור קאָד, און דיסענטראַלייזד אַפּלאַקיישאַנז. זינט סעפטעמבער 2015, Redman האט געשריבן מער ווי 5,000 אַרטיקלען פֿאַר Bitcoin.com נייַעס וועגן די דיסראַפּטיוו פּראָטאָקאָלס ימערדזשינג הייַנט.