Tron founder Justin Sun announced plans for a decentralized stablecoin on April 21. The USDD network will provide custody services for highly liquid assets valued at $10 billion that will be collected from blockchain industry initiators as early reserves.
Tron launches the USDD
In a blog post posted at the hejustinsun.com website, the official announcement was made about the creation of a new stablecoin, USDD. The post detailed the evolution of stablecoins from the “Omni-USDT 1.0” era to decentralized algorithmic stablecoins, and that Tron DAO has partnered with major players in the blockchain industry to create a new stablecoin. The post promised USDD to be “the most decentralized stablecoin
USDD will be decentralized in the era of Stablecoin 3.0, so you will not have to rely on any centralized institutions for redemption, management, or storage.
USDD will be pegged to TRX’s underlying asset and issued in a decentralized manner. When the USDD price is lower than $1, users and arbitrators can send $1D to the system and receive a TRX of $1
Is it similar to UST Terry?
Many people have compared Justin Sun and Tron’s new stablecoin to the UST, however, Terra’s founder Do Kwon considers the latter stablecoin as a success.
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He turned it over to Kwon.
To a similar extent, as more blockchains issue their own sovereign stablecoins, the UST wins.