Tron Secures Third Position as Total Value Locked (TVL) Surges in DeFi

• JustLend’s TVL jumped from $1.79 billion to $2.86 billion.
• USDD is controlled by smart contract algorithms, unlike Tether’s USDT.

DeFi’s third-largest blockchain is Tron, a Justin Sun-led blockchain that debuted in 2018. (TVL). In the last month, the total value locked (TVL) in Tron’s nine applications has increased by 44 percent, according to DefiLlama.

There are only two other chains ahead of it: BNB Chain and Ethereum. Binance Smart Chain’s TVL is currently $10.8 billion, whereas Ethereum’s is above $93 billion. As if that wasn’t enough, Tron is the only blockchain with steady growth on every major network. Six cryptos have lost double-digits of their value in the last month: Ethereum; Polygon; Solana; Avalanche; BNB Chain; and Fantom.

Primary Driver of Bullish Activity

The rollout of Tron’s new algorithmic stablecoin, which promises double-digit returns, has been the primary driver of the bullish activity, similar to that of Terra’s newly implemented stablecoin. Instead of being backed by a central authority, USDD is controlled by smart contract algorithms, unlike Tether’s USDT or Circle’s USDC. An arbitrage transaction between USDD and TRX, Tron’s native token, governs the stablecoin’s dollar-peg.

Investors can exchange one USDD for one TRX at any time. An investor who buys USDD at a bargain and then sells the TRX tokens on the open market might pocket the difference if the USDD price falls below a dollar peg. Investors should expect annual profits of over 20% from USDD’s many Tron-based ventures, just like Terra does.

JustLend, a Tron-based lending platform, offers a current interest rate of 23% for USDD. Stablecoin platform SUN offers customers the opportunity to earn up to 64% for staking their USDD-TRX liquidity tokens. Many of these platforms have seen a significant increase in activity due to the high-interest rates. According to DefiLlama, JustLend’s TVL jumped from $1.79 billion to $2.86 billion in less than a month.