Home Tech USDD will be TRON’s fully on-chain decentralised stablecoin, Justin Sun announces

USDD will be TRON’s fully on-chain decentralised stablecoin, Justin Sun announces

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  • Justin Sun Says USDD Will Be Backed By $10 Billion Crypto Reserve
  • It uses a suitable algorithm to maintain a 1:1 relationship between USDD and the dollar despite volatility.

31-year-old cryptocurrency figure Justin Sun has revealed plans to launch the first token of the stablecoin 3.0 era, the decentralized USD (USDD).according to open letter Sent last week, Sun explained that TRON DAO has started working with top figures in the blockchain space to launch USDD as the most decentralized stablecoin.

The stablecoin boasts a $10 billion backing in the cryptocurrency reserve, which Sun said will be boosted by the newly formed TRON DAO reserve over the next six months to a year. Reserves consist of highly liquid assets and are derived from key entities in the blockchain scene.

USDD is “Mathematical and Algorithmic Competence” Tie the peg to the US dollar. With the belief that a decentralized ecosystem will require a decentralized stablecoin, the founder of TRON argues that eventually all blockchains will go the way of a decentralized stablecoin. .

“Blockchain proponents seek to decentralize everything that is centralized, believing strongly in the power of mathematics and algorithms rather than violence and coercion in creating the future we want for the world. Today we see the potential of decentralizing the most centralized area of ​​the blockchain world.” he wrote

Stablecoin 3.0 era

Sun explained that the launch of USDD will signal the beginning of the Stablecoin 3.0 era. He said TRON-based USDD will be the most efficient and cheapest stablecoin platform in the DeFi space.

He continued that the stablecoin 3.0 era will be characterized by the extraordinary speed and affordability synonymous with the TRON-based USDT-led stablecoin 2.0. This period has seen transaction costs drop to a few cents from the $100 or so seen in stablecoin 1.0. Transaction times have also been reduced from over 30 minutes to his 1 second of a few minutes.

In the stablecoin 3.0 era, tokens will no longer rely on centralized institutions for custody, custody and redemption services. Instead, for USDD, TRON’s TRX token will be used for full on-chain decentralization. It also employs a decent algorithm in a decentralized way to keep USDD stable at 1:1 against the dollar despite volatility.

To protect against risk, the TRON DAO Reserve sets a base interest rate of 30% per annum.

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