- Terra’s attempt to form the Luna Foundation Guard in order to diversify UST’s collateral and avoid depegging was too late. He said that the reserve had only $3 billion worth of BTC, which was insufficient to ensure the almost $19 billion UST supply.
- The TRON DAO Reserve, according to Sun’s ideas, will offer a utility for USDD across crypto exchanges to aid in its acceptance. On both controlled and decentralized trades, USDD exchanging matches try to have preferred liquidity over USDT or USDC.
- USDD has a guaranteed collateral ratio of at least 130 percent, which is higher than DAI’s 120 percent. The USDD collateral ratio is available in real time on the TRON DAO Reserve’s website, which is open to the public 24 hours a day, 7 days a week.
TRON founder Justin Sun revealed today that the USDD stablecoin project has received a new upgrade that includes increased transparency and collateral. According to a Medium post, the project has been upgraded to the first over-collateralized decentralized stablecoin [OCDS], which promises speedier transactions and the highest collateral ratio. It hopes to usher in the Stablecoin 3.0 age by making banking more accessible to everyone.
USDD Has A Guaranteed Collateral Ratio Of At Least 130 Percent
According to the blog post, USDD has a guaranteed collateral ratio of at least 130 percent, which is higher than DAI’s 120 percent. The USDD collateral ratio is available in real time on the TRON DAO Reserve’s website, which is open to the public 24 hours a day, 7 days a week. The upgraded, over-collateralized USDD will, according to Sun, provide more varied features to underpin its stability. At the moment, the 200 percent + collateral ratio provides a very strong safety net for the USD, he asserted.
USDD debuted on the TRON network on May 5, alongside Terra’s algorithmic stablecoin UST. The most recent action is being viewed as a precautionary effort to avoid a Terra Luna catastrophe. Sun, the company’s creator, wrote a blog post on May 31 summarizing the lessons he learnt from Terra’s rapid demise. These lessons, according to Sun, will be implemented in TRON’s decentralized stablecoin USDD.
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The Fate Of USDD According To Tron’s Founder
Justin wrote on his blog that the Terra crash taught him that inorganic and unsustainable development is undesirable and that transparent over-collateralization is crucial to preventing depegging. Furthermore, Terra’s attempt to form the Luna Foundation Guard in order to diversify UST’s collateral and avoid depegging was too late. He said that the reserve had only $3 billion worth of BTC, which was insufficient to ensure the almost $19 billion UST supply.
The TRON DAO Reserve, according to Sun’s ideas, will offer a utility for USDD across crypto exchanges to aid in its acceptance. On both controlled and decentralized exchanges, USDD trading pairs aspire to have better liquidity than USDT or USDC. The blog article closed with a basic roadmap of USDD’s journey to be crypto’s next settlement currency. USDD also intends to enable a number of different chains. They are now active on the TRON, BNB Chain, and Ethereum blockchains.
Source: https://www.thecoinrepublic.com/2022/06/06/usdds-fresh-redesign-would-spearhead-the-stablecoin-3-0-era-according-to-trons-founder/