On May 5, the blockchain Tron will have its own stabelcoin called USDD. This was announced by Tron founder Justin Sun.
USDD is an algorithmic stabelcoin tied to the U.S. dollar, similar to TerraUSD (UST) and Frax Finance (FRAX).
Sun stated that the USDD algorithm ensures that the stablecoin maintains its peg to the U.S. dollar regardless of market conditions.
Stablecoin will be managed by a decentralized autonomous organization (DAO) called Tron DAO. According to Sahn, the Tron DAO will manage the reserve with an interest rate of 30%.
Highly liquid cryptocurrency reserves worth $10 billion will be created to secure the stabelcoin. However, what specific assets will secure the reserves is not yet known.
Earlier, Terraform Labs CEO Do Kwon said he would create a $10 billion bitcoin reserve to secure UST.
USDD will be available on Ethereum and BNB by launching through the BitTorrent network interconnect protocol.