USDD

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Tron founder Justin Sun is making the case for why Decentralized USD (USDD) is different than Terra’s failed decentralized UST stablecoin.
In an interview with CoinGecko, Sun says that USDD, Tron’s algorithmic stablecoin, is a hybrid that uses the best aspects of every USD-pegged asset on the market.

“I will say I think USDD is a hybrid model of DAI, UST, and other stablecoins. So basically we studied all the algorithms in the decentralized stablecoin markets. And then we basically took advantage of all the stablecoins here and made the better choices for the traders in the market. 
I think first of all, the disadvantage of Ethereum and the Bitcoin blockchain is Ethereum and the Bitcoin blockchain, they don’t have native stablecoins, so I think for Bitcoin, because it’s not a smart contract platform, but Ethereum… Even though we have DAI, basically I think DAI is a decentralized stablecoin on Ethereum.
But be aware, DAI is not blockchain-based, DAI is developed on Maker. Even though you use ETH as collateral and to mint DAI, the governance structure is not using ETH as the governance structure. It’s using MKR for the structure, which also means Maker is just creating smart contracts on Ethereum. So it’s not an Ethereum blockchain-based stablecoin.
 So I think because stablecoins are way too important, it’s basically the foundation of the industry, and that’s why first of all we need to have a blockchain-based stablecoin. LUNA is a blockchain based stablecoin. So LUNA is the token for the blockchain and you can use LUNA to mint UST. But the problem for LUNA and the UST is that they only have one correlation. So basically all the UST is 100% based on LUNA, which I think caused this kind of bad death spiral…” 
At time of writing, USDD has a market cap of $747 million. It briefly lost its peg for several weeks in June of this year but has been trading steady at $1 since.

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The post Is Tron’s New Stablecoin the Next UST? Crypto Billionaire Justin Sun Makes Case for USDD appeared first on The Daily Hodl.


Tron founder Justin Sun is making the case for why Decentralized USD (USDD) is different than Terra&#8217;s failed decentralized UST stablecoin. In an interview with CoinGecko, Sun says that USDD, Tron&#8217;s algorithmic stablecoin, is a hybrid that uses the best aspects of every USD-pegged asse...

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Is Tron’s New Stablecoin the Next UST? Crypto Billionaire Justin Sun Makes Case for USDD

In order to continue strengthening its algorithmic stablecoin USDD, the TRON DAO Reserve has tapped another institution to mint and burn it as a collaborator – Wintermute.
The latter has extensive experience with the digital asset universe and operates as an established global algorithmic trading firm.
USDD’s Recent Issues
Algorithmic stablecoins garnered people’s attention a few months back when Terra’s UST lost its peg against the dollar and literally burst into flames. In a matter of days, its value, as well as the price of the other Terra native coin – Luna – plummeted to virtually zero.
TRON’s take on the algorithmic stablecoin industry – USDD – also came under fire, at least according to Justin Sun and the team. It started losing its dollar parity while TRX also began decreasing in value in June.
However, the TRON DAO Reserve acted by withdrawing billions of TRX from centralized exchanges and poured billions of dollars into defending the peg.
It seems that the moves have helped as USDD reclaimed its lost ground and survived the subsequent market crash. TRON noted that USDD had over $2.3 billion in backing and a market cap of over $700 million as of the end of July.
The organization behind the stablecoin has made another step towards defending the asset and enhancing its capabilities by partnering with Wintermute.
Wintermute Joins USDD
The press release shared with CryptoPotato informed that Wintermute has become the ninth member and whitelisted institution to mint and burn the USDD stablecoin.
The company is a large algorithmic trading firm with previous experience with crypto. It has over $5 billion in average daily trading volume, facilitates OTC trading, and provides liquidity for centralized and decentralized exchanges.
The partnership between the Reserve and Wintermute will see the latter advise the TDR and “make recommendations to enhance, develop, and supply general aid for the USDD network,” the statement said.
The post TRON DAO Reserve Welcomes Wintermute as USDD’s Latest Whitelisted Organization appeared first on CryptoPotato.

Wintermute has become the ninth member and whitelisted organization to mint and burn the algorithmic stablecoin. 

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