New stablecoin from Justin Sun
The success achieved by the Terra blockchain platform after the launch of its own stablecoin UST (Terra USD) has become a trigger for similar solutions from other well-known protocols.
Justin Sun, in his open letter on April 21, 2022, announced the launch of the decentralized algorithmic stablecoin USDD on the Tron blockchain on May 5. Unlike UST, the Tron DAO stablecoin will be provided not by bitcoins, which are physically blocked in the issuer’s treasury, but by US dollars. The reserve, which is designated by Justin Sun, is $10 billion.
Sun appeals to the main blockchain concept (“decentralize everything centralized”) and promises not only the most decentralized and reliable stablecoin in the history of the industry, but also a high APY at 30% per annum.
The mathematical model that will ensure the stability of the USDD-USD exchange rate peg at a ratio of 1:1 will be as follows:
The native TRX token of the Tron network reacted positively to the news, adding almost +20% in the first day after Justin Sun’s post. The market reacted about the same way in the case of UST, when LUNA increased both directly due to the announcement from the Terra Foundation and to reports of regular purchases of bitcoin collateral.
Even though some experts (for example, cult journalist Colin Wu) criticized Sun’s statements about the revolutionary nature of his technology, one of the founders of Terra, Do Kwon, supported the new stablecoin, saying that in the future, absolutely every blockchain will operate on its own decentralized stablecoin.
USDD will be deployed on Tron, but can also be used on the Ethereum and BSC (Binance Smart Chain) blockchains via the BitTorrent Chain cross-chain bridge.
