The emergence of various stablecoins in the cryptocurrency market is increasingly flourishing. Among the best known are Binance (BUSD), TerraUSD (UST), Tether (USDT), TrueUSD (TUSD), Gemini Dollar (GUSD). Despite raging competition, the Tron (TRX) project decides to launch its own native stablecoin on its blockchain. The founder Justin Sun announces the release of this native algorithmic stablecoin of TRON from May 5, 2022. The latter has already launched TRXD 3 years ago, an attempt which failed. Does USDD have a brighter future?

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TRON-based USDD will be issued and enter circulation on May 5, 2022

USDD: the stablecoin of the 3.0 era

Stablecoins 1.0 and  2.0 have already proven themselves. In a press release , Justin Sun describes the USDD as the first stablecoin of the 3.0 era in the field of blockchain. Being an algorithmic stablecoin , USDD will experience reassuring stability against the dollar.

The inspiration for how USDD works is Terra’s UST. Therefore, it will use the same arbitration system. As much to specify that the UST of Terra is a good source of inspiration. Simply, because it is currently positioned on the third most important market stablecoin market globally in terms of capitalization.

USDD is backed by $10 billion in assets, a sum that will serve as a start-up reserve. The goal is to stabilize the USDD exchange rate as much as possible despite its volatile nature. This store of value at the same time guarantees the application of convertibility. This reserve will be supervised by the Tron DAO .

Finally, the launch of the USDD granted more notoriety to the native token of TRON that is the TRX.

The Future of TRON’s USDD Stablecoin (TRX)

Where TRXD failed, USDD will be able to succeed and innovate the blockchain world of the 3.0 era. In any case, this is the goal of the founder of the TRON (TRX) blockchain. Justin Sun is aiming for similar success to what the Terra blockchain UST has seen. In addition to stability, this stablecoin will have the lowest fees in the global DeFi ecosystem.

Into the stablecoin  world 3.0, USDD will do without any support from centralized institutions. There will be a complete decentralization of the chain starting with purchases, management and storage.

As for the issue of stability, the USDD protocol wishes to keep the USDD stable with a parity of 1:1 with the dollar. What does that mean ? When the price of USDD is below 1 USD, it is still possible to send 1 USSD to the system to receive 1 USD of TRX.

The USDD token will be launched on the Tron blockchain network. Then, it will be launched on the Ethereum (ETH) network and on the BNB thanks to the BTTC protocol .

Conclusion

The Tron blockchain is already enjoying some notoriety among users thanks to the low cost transfer of USDT. Whether the USDD will live up to expectations remains to be seen. In any case, its launch promises a new era for all stablecoins in the cryptocurrency market.

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