- Summary:
- TRON network’s USDD stablecoin has just upgraded to become the first over-collateralized decentralized stablecoin. What does that mean?
Since its introduction on May 5th, TRON-based USDD has surpassed numerous key milestones, joining the class of global crypto heavyweights. With about 700 million USDD in circulation, it has recently become the world’s first over-collateralized decentralized stablecoin (OCDS). Consequently, it supports speedier transactions while still maintaining the highest global collateral ratio.
The most notable characteristic of the blockchain industry is its ongoing evolution and quick transformation of existing sectors. It has been a breakthrough technology to the world and financial markets globally. To date, USDD has grown organically and has aspired to improve Stablecoin 3.0 to make finance more accessible to everyone.
The Tron Network and its impact on USDD’s success
Since its inception, the TRON network has seen tremendous growth. Total user accounts on the blockchain have exceeded 96 million as of June 2022; over 3.2 billion total transactions have been completed; and over $12.3 billion in total value locked (TVL) has been secured. The TRON DAO, one of the largest decentralized autonomous organizations (DAOs), is at the center of a thriving community driving the TRON blockchain.
Also, USDD has a collateral ratio of at least 130%, which is higher than the 120% set by DAI, which is regarded as the gold standard in the sector. Furthermore, the network offers great transparency. For instance, the TRON DAO Reserve’s website, which is open 24/7, displays up-to-date information on the USD collateral ratio.
The TRON DAO Reserve’s over-collateralization of assets strengthens USDD’s stability and reputation. BTC, TRX, and stablecoins like USDC, USDT, TUSD, and USDJ constitute the reserve assets that underpin the creation of USDD. To put it another way, each USDD is backed by at least $1.3 worth of BTC, TRX, stablecoins, and possibly other assets that are highly liquid. USDD’s stability and risk tolerance have become stronger, thanks to the upgrade.
“Spearheading the Stablecoin 3.0 era, the upgraded, over-collateralized USDD will add more diversified features to underpin its stability,” said H.E. Justin Sun, Founder of TRON.
So far, USDD operates on the TRON, Ethereum, and BNB Chains. However, as time progresses, it will expand into new ecosystems and use cases. Ultimately, stablecoins like USDD, whose supply and use are increasing, will lead the next phase of blockchain decentralization. This is known as “Stablecoin 3.0”