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TRON Founder – “USDD New Variation Will Lead to Stablecoin 3.0 Era” - India Blogger

TRON founder Justin Sun today announced A new upgrade to its stablecoin project USDD that includes increased transparency and the addition of collateral.

According to a Medium post published, the project has upgraded itself to the first ultra-collateralized decentralized stablecoin. [OCDS]Which claims to offer fast transactions with the highest collateral ratio.

by doing so, he wants Leading the stablecoin 3.0 era, making finance accessible to all.

According to the blog post, USDD has a guaranteed collateral ratio of at least 130%, which is higher than the 120% set by DAI. The real-time collateral ratio of USDD is published on the website of TRON DAO Reserve, which is publicly available 24/7.

Sun added that “the advanced, hyper-collateralized USDD will add more diversified features to reduce its stability. Currently, the 200%+ collateral ratio provides USDD with a very strong safety net,” he claimed.

USD, like Terra’s algorithmic stablecoin UST, appeared on the TRON blockchain on May 5. The latest move is seen as a preventive measure to avoid the terra luna situation.

Tron founder’s roadmap for the future of USDD

On May 31, founder Sun published a blog outlining the lessons learned from Terra’s dramatic fallout. According to Sun, these lessons will be implemented in TRON’s decentralized stablecoin USDD.

In his blog, Justin noted that “inorganic and unsustainable development is bad” and that “transparent over-collateralization is the key to preventing deprecating” the lessons he learned after the Terra crash.

Furthermore, Terra’s attempt to diversify UST’s collateral and establish a Luna Foundation Guard to prevent depreciation was already too late. He wrote that the reserve consisted of just $3 billion in BTC, which was not enough to secure a supply of about US$19 billion.

In Sun’s plans, the TRON DAO Reserve will create a utility for USDD in crypto markets to aid its adoption. USDD trading pairs aim to have more liquidity than USDT or USDC on both centralized and decentralized exchanges.

The blog post concluded with a rough blueprint of USDD’s journey to be the new settlement currency of crypto.

USDD is also planning to extend its support to multiple chains. Currently, they are active on TRON, BNB Chain and Ethereum.

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