TRON, a blockchain-based decentralized platform founded by the former CEO, Justin Sun announced today in an open letter on Twitter about the USDD (Decentralized USD) which is the newest stablecoin on the TRON blockchain and it would be launched on May 5th, 2022.
(1/2)😎Stablecoins have entered a new era!
— USDD (@usddnetwork) April 21, 2022
The launch of the USDD marks its official entry into the field of decentralized stablecoin and TRON DAO aims to partner with other blockchain and industry leaders to fully establish the Decentralized USD.
What is USDD?
USDD or the Decentralized USD is the newest stablecoin being launched on the TRON blockchain and it is an algorithmic stablecoin that would be issued as a TRC token on the TRON network.
It will leverage the power of mathematics and algorithms to achieve the overarching goal of financial freedom for all. This is similar to the other algorithmic stablecoins such as TerraUSD (UST) and Frax Finance (FRAX).
💪 Today, we see the possibility of decentralizing the blockchain world’s most centralized territory. pic.twitter.com/S5gX3JpiVH
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) April 21, 2022
The recently established TRON DAO Reserve would serve as a transparent mechanism to fully manage the reserves backing the USDD.
As explained in the open letter to the community:
When the 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 and when the 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.
The Decentralized USD algorithm will ensure that the newest stablecoin on the TRON blockchain maintains its US dollar peg regardless of the market conditions.
USDD will also be available on Ethereum and BNB Chain through the BTTC cross-chain protocol.
What is TRON?
TRON is a blockchain-based decentralized platform founded by the former TRON CEO, Justin Sun in 2017 and it aims to create a free, global digital content entertainment system with distributed storage technology and allows easy and cost-effective sharing of digital content.
It has a native cryptocurrency called Tronix or TRX and the company is dedicated to building the infrastructure for a truly decentralized internet which they have added blockchain support to different fields such as DeFi, NFT, and GameFi.
Were you surprised to know about the newest decentralized algorithmic stablecoin on TRON? Let us know in the comments section below.
For more news and updates, see Tron Spark.