TRON Stablecoin USDD Is Launched Today
USDD, a TRON stablecoin, is launched and entered circulation on May 5 morning. According to the official announcement, USDD will be issued on TRON, Ethereum, and BNB Chain.
In an open letter, founder of TRON Justin Sun mentioned that a TRON DAO Reserve would be established to ensure the sustainable development of USDD. The TRON stablecoin will not rely on any centralized institutions for redemption, management, and storage. Instead, it will achieve full on-chain decentralization. The TRON stablecoin 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. 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. Regardless of market volatility, the USDD protocol will keep the TRON stablecoin stable at 1:1 against the US dollar via proper algorithms in a decentralized manner.
Taken together, this decentralized currency protocol with a stable price will significantly expand use cases of crypto, making it truly accessible with far-reaching implications for the blockchain space and the real economy.
After four years of growth, TRON has seen over 87 million on-chain users and 3 billion transactions in its ecosystem. The circulating supply of TRC-20 USDT has exceeded that of ERC-20 USDT, standing at $41 billion, making TRON the world’s largest stablecoin network. It boasts over $55 billion worth of financial assets, including on-chain stablecoins, and has settled and cleared total financial assets of over $4 trillion.
In December 2021, the TRON network became fully decentralized and was restructured into the TRON DAO, the world’s largest decentralized autonomous organization (DAO).
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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