TRON USDD stablecoin collateral strengthens

In order to improve the transparency of his new work stablecoin The USDD algorithm, Tron, has revealed the details of the collateral strategy for his new token.

a stablecoin exaggerated

The stablecoin Currently decentralized stablecoin The most bet in the cryptocurrency space since its launch on May 5. A little over a month later, . was released stablecoin It breaks all kinds of records.

Powered by the first ever cryptocurrency in the blockchain industry, TRON DAO Reserve, and stablecoin USDD has a collateral ratio of 200.72%, with a guaranteed ratio of 130%. With a total circulating supply of 703 million, TRON-based USDD turns out to be number one stablecoin Over-Decentralized Collateral (OCDS), providing faster transactions with the highest collateral ratio in the world.

The stablecoin Aims to avoid mistakes and redness dead now stablecoin Terra, $UST, to lead the era stablecoin 3.0 in Blockchain and Decentralized Finance (DeFi). All about Terra’s fall in our exclusive profile.

The team built one of the stablecoins Secure decentralized US dollar exchanges, featuring a minimum guarantee ratio of 130%, above the 120% set by DAI, the industry leader in stablecoins. In addition, the percentage of collateral is published in real time on the TRON DAO Reserve website and is available to the public 24/7.

Ahead of Stablecoin 3.0 Era, Upgraded USDD Backed by Collateral Will Add More Diversity to Boost Its Stability said His Excellency Justin Sun, Founder of TRON. The stablecoins They are also in the fight against CBDCs.

American dollar

The TRON DAO Reserve, which maintains USDD parity, currently holds 10,500 BTC, 240 million USDT and 1.9 billion TRX in the reserve account, with an additional 8.29 billion TRX burned to reach USDD. Thus, the collateral ratio is 200.72%, with total assets of $1.296 billion as collateral for $703 million.

USDD highly suspicious of the community

Critics were quick to point out that USDD’s approach is quite similar to what Terra has done with land tanks. Criticism escalated after Tron founder Justin Sun indicated that Tron’s DAO used $100 million of its reserves to buy more TRX and BTC reserves.

Some Twitter users were quick to note the similarities between Tron’s DAO and Do Kwon metrics before LUNA and UST crashed. Terra bought billions of bitcoins before the treasury collapsed, in an effort to build strong reserves to support the stablecoin peg. Unfortunately, his efforts sparked a sell-off of bitcoin when the crash finally occurred.

One reviewer noted that the Tron DAO appears to be heading down the path of terrestrial tanks after its latest announcement. Concerns are growing over the fact that USDD has a similar start-and-burn mechanism to UST. This means that it is likely to suffer a deadly spiral effect similar to an attack similar to its counterpart.

Moreover, critics caution against giving too much credence to Sun’s claim that the Tron DAO reserve, which was also created to maintain the US dollar’s peg, performs a similar function to the US Federal Reserve. ” The announcement should be seen as the start of a discussion and not a real solution said Brian Passfield, chief technology officer at Fringe Finance. ” Justin is known for making amazing statements and his reputation (and that of TRON Network) wouldn’t allow him to lead a project like this. “.

The stablecoinsespecially stablecoins So algorithms are at the heart of all discussions. Some believe it is the future of the blockchain and others think it is doomed to disappear like Terra.

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Alexis Patten

Passionate about geopolitics, economics, cryptocurrency, Eurasia and travel! (as far east as possible), cryptocurrency trader for 4 years.

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