Justin Sun prepared a Tron Stablecoin With $10 Billion of Crypto Collateral

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.