A decentralized stablecoin USD, USDD was launched yesterday by the TRON DAO. The stablecoin has been listed on Sunswap, Sun.io, Curve, Uniswap etc. and has an initial supply of 100 million.
USDD is available on Ethereum and BNB Chain via BitTorrent’s (BTCC) cross-chain protocol. It will be available on more blockchains in the future. The rollout of the stablecoin will take place in four phases, leading to the launch of USDD Mainnet.
The announcement for this stablecoin was made more than a week ago by Justin Sun, the founder of TRON in an open letter on Twitter.
USDD is pegged to the U.S. dollar in a 1:1 ratio by an algorithmic mechanism. The peg will be sustained by creating and destroying USDD by a mint-and-burn mechanism and arbitrage swap.
When the USDD falls below $1.0, buyers can swap the USDD for exactly $1 worth of TRX, TRON’s native token. The swap takes place using the peg mechanism and reduces the supply of USDD.
When the USDD rises above $1.0, buyers can trade $1.0 worth of TRX for USDD, thus creating more USDD.
The TRON DAO Reserve will set its interest-rate at 30% per annum, which means a rate of 30% Annual Yield Percentage for investors. TRON intends to develop a reserve with $10 billion worth of bitcoin and other cryptocurrencies to back the stablecoin.
At the time of writing, 168 million USDD have already been issued.
