Justin Sun Plans a Tron Stablecoin With $10 Billion of Crypto Collateral



Tron founder Justin Sun has announced plans to launch a decentralized algorithmic stablecoin called USDD on the TRON blockchain network.

  • In an open letter on Thursday (April 21, 2022), Sun revealed that USDD will be “a fully decentralized stablecoin underpinned by mathematics and algorithms.”
  • According to the Tron founder, USDD will not rely on any centralized entity for storage, redemption, or management but will be instead issued in a decentralized manner and will be pegged to Tron’s native token TRX. An excerpt from the letter said:

“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. When USDD’s price is higher than 1 USD, users and arbitrageurs can send 1 USD worth of TRX to the decentralized system and receive 1 USDD.”

  • Sun added that the stablecoin’s algorithm will maintain its stability against the US dollar despite market volatility.
  • Furthermore, the open letter noted that the TRON DAO reserve will offer a risk-free interest rate of 30% per annum and will also provide custody service for $10 billion in highly liquid assets.
  • The fund, which will be “raised from initiators of the blockchain industry,” will act as a reserve to keep the stability of USDD.
  • While the cryptocurrency assets are not mentioned, the plan seems similar to Do Kwon’s, co-founder and CEO of Terraform Labs, who is looking to purchase $10 billion worth of bitcoin as a reserve for UST.
  • Meanwhile, Sun announced that the TRON-based USDD is expected to be issued and circulated beginning on May 5, 2022. The decentralized stablecoin will be available on Ethereum and the BNB chain via the BTTC cross-chain protocol.
SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

Related:  Elon Musk's Twitter Working On Crypto Payments, Files For Licenses In The US: FT

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Source link

Share this article: