Tron announces its plan to significantly raise capital backing its stablecoin
The USDD stablecoin, which arrived on the Tron blockchain on May 5, is designed as an algorithmic stablecoin indexed to the US dollar, according to Justin Sun. This structure of USDD looks identical to Terra’s collapsing stablecoin UST.
According to a Tron spokesperson’s statement, the current reserve includes 14,040 BTC (approximately $418 million), 140 million USDT and 1.9 billion TRX.
Justin Sun said:
“We want to upgrade USDD to a hybrid model. We have an algorithmic stablecoin on one side and TRON DAO reserve on the other”
USDD is following its algorithmic plan to keep the price of the asset stable to the dollar by trading between TRX, Tron token and USDD. designed to encourage arbitrageurs. Just like Terra, Tron has signaled to create billions of dollars worth of Bitcoin and altcoin reserves to support USDD in extreme market conditions. However, as seen before, this plan did not benefit Terra’s UST.
17048
