USDD is a new algorithmic stablecoin issued on the Tron blockchain.
In a recent turn of events, USDD stablecoin has been launched on the Tron blockchain. The stablecoin is designed to fight against inflation as a store of value.
USDD is said to be “Tron’s answer to Tether”. It is pegged 1:1 to the US Dollar and can be used for transactions on Tron and DApps. It was built using Tron Virtual Machine and runs on Tron Network. Let’s take a look at how you can get your hands on USDD.
$USDD Stablecoin is pegged 1:1 to the US Dollar, which means you can’t lose money by holding onto it or trading it like you would with other cryptocurrencies. Being able to trade USDD in this way allows people to buy and sell in a very quick manner without worrying about the price volatility that comes with Bitcoin or Ethereum.
Tron Foundation CEO Justin Sun said, “We are thrilled to add USDD to our DeFi ecosystem, as it will bring more liquidity to the growing TRON blockchain.”
USDD does not depend on centralized institutions for redemption, management, and storage. Instead, it is fully decentralized on-chain. $USDD is pegged to TRX – the underlying asset of TRON – and issued in a decentralized manner by TronDAO.
The team behind $USDD said they hope this stablecoin will provide investors with increased stability when trading cryptocurrencies and increase trust in digital assets; however, there are serious questions about whether it is an efficient use of resources or if it’s really necessary to launch yet another stablecoin in an already oversaturated market.
The decentralized algorithmic stablecoin will be a cornerstone of the Tron ecosystem and the world’s first algorithmic stablecoin on a public chain.
USDD on Tron blockchain is an algorithmic stablecoin. 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 USDD stable at 1:1 against the US dollar via proper algorithms in a decentralized manner.
This mechanism resembles the one implemented by Terra’s $UST/$LUNA, which, considering the number of users and money that moves on the Tron blockchain, can have a huge impact.
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