The Tron blockchain will have its own stablecoin USDD, which will be backed by $10B in cryptocurrency reserves
![](data:image/svg+xml;utf-8,<svg xmlns="http://www.w3.org/2000/svg" width="1920" height="1080" />)
Tron founder Justin Sun announced that the blockchain will have its own stablecoin called USDD on May 5.
USDD is an algorithmic dollar-pegged stablecoin similar to TerraUSD (UST) and Frax Finance (FRAX).
Sun stated that the USDD algorithm ensures that the stablecoin maintains its peg to the US dollar regardless of market conditions.
The stablecoin will be managed by a decentralised autonomous organisation (DAO) called Tron DAO. According to Sun, Tron DAO will manage the reserve with an interest rate of 30%.
To ensure the stablecoin, highly liquid cryptocurrency reserves in the amount of $10B will be created. However, what specific assets will provide the reserves is still unknown.
Earlier, Terraform Labs CEO Do Kwon announced that he would create a $10B BTC reserve to back UST.
USDD will be available on the Ethereum and BNB network by launching through the BitTorrent network's internetwork protocol.
Source: Business Wire
11 comments