Home
News
Establishing On-Chain Decentralization
According to Justin Sun, the founder of TRON, the introduction of Tron’s new stablecoin, Decentralized USD or USDD, combines the finest features of rival stablecoins now available. Sun said that TRON DAO has joined forces with significant blockchain players to establish USDD or Decentralized USD. It is the most decentralized stablecoin in human history. This act made finance accessible to everybody by using mathematics and algorithms. The whole act was declared in an open letter that was released on April 21, 2022.
According to Justin, in the Stablecoin 3.0 era, USDD will not be managed, stored, or redeemed by any centralized entities. The goal will be to fully establish on-chain decentralization. The decentralized currency USDD will be minted with a peg to its underlying asset, TRX. Users can submit 1 USDD to the system and get back 1 USD worth of TRX when the price of USDD is less than 1 USD.
USDD Superior to its Rivals
When USDD is more expensive than 1 USD, users can contribute 1 USD worth of TRX to the decentralized system and receive 1 USDD in return. The USDD protocol will maintain USDD stability at 1: 1 against the US dollar using appropriate algorithms in a decentralized way, regardless of market volatility.
The USDD on TRON is scheduled to be issued and enter circulation on May 5, 2022, he added. It will also be available on Ethereum and BNB Chain through the BTTC cross-chain protocol, according to the statement. In an interview, Sun outlined that he thinks the USDD is superior to its rivals. Justin state that he believes USDD to be a combination of DAI, UST, and other stablecoins. Therefore, they essentially looked at every algorithm in the decentralized stablecoin marketplaces. Then, they essentially produced the best decisions for the market’s traders by utilizing all of the stablecoins.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
