Launched as an algorithmic stablecoin, Tron’s USDD has changed its operating model to avoid a possible UST-like collapse.
Tron’s stablecoin, USDD, launched last week, is now backed by BTC, USDT and TRX. USDD currently appears to be over-collateralized at 226%, according to data from Tron DAO, which is responsible for collateral for the stablecoin. The team also promised a 130% minimum margin, which is higher than the 120% margin provided by MakerDAO’s DAI stablecoin. The collateral-backed USDD includes 14,040 Bitcoins, 240 million USDT and approximately 1.9 billion Tron (TRX).
Tron founder Justin Sun also announced the event on his Twitter account.
“This has been in the plan, but Terra/Luna definitely accelerated and prioritized this for our team… We want to have #USDD to be #overcollateralized, which I think will make market participants more comfortable about using us in the future.” #SAFU💎💪https://t.co/3uarGjhefR
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) June 6, 2022
