Justin Sun Says TRON will be entering the battle for stablecoin supremacy.
Sun believes that USDD will be a step up from other stablecoin systems like Tether (USDT), which still run on centralized models.
“While stablecoins in the 2.0 era are exceptionally fast and affordable, their reserves are still stored, managed, and redeemed by centralized institutions,” he said.
“Today, TRON is starting a self-imposed revolution, pooling all its resources to create USDD, a fully decentralized stablecoin underpinned by mathematics and algorithms, bringing the development of stablecoin to the next level. By building the most efficient and affordable stablecoin network in the global DeFi ecosystem, TRON aims to usher stablecoins into the 3.0 era led by the TRON-based USDD.”
According to Sun, USDD won’t rely on any centralized institutions for issuance, redemption, management, or storage. Instead, USDD “will achieve full on-chain decentralization” and be pegged to TRX, the underlying asset.
“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.”
Sun, who was appointed as Grenada’s ambassador, and permanent representative of the country to the WTO, said that USDD on TRON is slated for issuance on May 5, and will also be available on Ethereum and the BNB chain via the BTTC cross-chain protocol.
The stablecoin’s roadmap consists of four stages, which are:
“1.0 Space, 2.0 ISS, 3.0 Moon, and 4.0 Mars—echoing both mankind’s and TRON’s efforts in future space exploration. In 1.0 Space, the USDD management will be entrusted to the TRON DAO Reserve and other major blockchain institutions. The former will be tasked to provide custody service for the $10 billion worth of highly liquid assets raised from initiators of the blockchain industry, use them as an early-stage reserve, keep the exchange rate of USDD stable, and enforce convertibility fully.”
After launch, TRON’s decentralized autonomous organization (DAO) will set a “basic risk-free” interest rate to 30% APY and facilitate other DAOs and centralized organizations accepting USDD to implement consistent interest rates.
The post TRON Founder Justin Sun Reveals Plans For New Algorithmic Stablecoin Backed By TRX appeared first on Coin Bureau.
News, Justin Sun, news, Stablecoins, tether, Tron, TRX, USDT
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