Like Terraform Labs UST stablecoin, Justin Sun said Tron will launch such an asset backed by cryptocurrency holdings

Tron founder Justin Sun has declared plans to launch a decentralized algorithmic stablecoin called USDD on the TRON blockchain network.

  • In an open letter on Thursday (April 21, 2022), Sun disclosed that USDD will be “a fully decentralized stablecoin supported by mathematics and algorithms.
  • According to the Tron founder, USDD will not rely on any centralized entity for redemption, management, or storage, but will be decentralized and tied to Tron’s native TRX token.:
  • Sun added that the stablecoin’s algorithm will remain stable despite market volatility against the US dollar.
  • Additionally, the open letter noted that the TRON DAO reserve will offer a risk-free interest rate of 30% per annum and will also offer a custody service for $10 billion in highly liquid assets.
  • The fund, which will be “increased from blockchain industry initiators,” will act as a reserve to maintain USDD stability.
  • While there is no mention of cryptocurrency assets, the plan appears to be similar to that of Do Kwon, co-founder, and CEO of Terraform Labs, who wants to buy $10 billion worth of bitcoin as a replacement for UST.
  • Meanwhile, Sun declared that the TRON-based USDD is expected to be issued and circulated from May 5, 2022. The decentralized stablecoin will be accessible on Ethereum and the BNB chain via the BTTC cross-chain protocol.