After a period of inactivity, on April 21, TRON announced the launch of USDD Stablecoin. So what stands out in USDD? Please read the article for details
What is USDD?
USDD is an algorithmic stablecoin (Algorithmic Stablecoins) is backed by copper TRX, that is, using an algorithm to ensure that the price of USDD is always stable at $1. This method is different from regular stablecoins like USDT or USDC, which has collateral behind.
Highlights of USDD
How USDD Works Like Stablecoins UST by Terra. Correlationally, then UST is USDD, TRX is Terra’s LUNA. Here’s a summary of how USDD works:
- When USDD is worth more than $1, you can deposit $1 worth of TRX to get $1 USDD.
- When USDD is less than $1, you can deposit $1 USDD to get $1 worth of TRX.
Among decentralized stablecoins, not many projects are long-lived. The main reason comes from the failure to keep the price of $ 1. Up to now, USDD’s model has proven to be successful, as evidenced by the fact that UST is currently the 3rd largest capitalization stablecoin among Stablecoins with the largest total capitalization.
To update prices, TRON uses Oracle with the following mechanism:
Super Representatives (SRs) grant Oracle the price of USDD on the TRON Network. They will submit a coupon about the current exchange rate of USDD in USD.
- Votes are counted in n Blocks, by taking the weighted averages as the true rate.
- Rewards will be given to those who voted by only a fraction of the average to incentivize SRs to vote honestly and accurately.
The rewards for SRs are:
- Tobin Tax: This is a fixed fee rate for stablecoin swaps within an ecosystem. The fee rate depends on the stablecoin participating in the swap. As USDD is currently the only Stablecoin in the USDD Protocol, Tobin Tax is not applicable at this stage and will become active once more Stablecoins are introduced.
- Spreading Fees: Each swap between USDD and TRX will incur a spread fee (minimum 0.5%). USDD Protocol will maintain stability in volatile market conditions by automatically adjusting fee rates.
Comments on the USDD . pattern
Although USDD operates similarly to UST, it does not mean that USDD will have the same success as its predecessor. There are three factors that USDD cannot have like UST:
The first is the quality of the community
Since debut Smart Contract, Terra is always supported by the community, as well as by large funds. Next, there are many activities that create trust about UST for the community.
But with TRON, the Founder of TRON, Justin Sun, is actually not a good game maker like CZ or SBF. In addition, Justin Sun has left TRON, to become a Grenada government ambassador. This is good for Crypto, but for TRON alone, when it loses its Founder, it is also very difficult for users to trust USDD.
Next is about the nature of Blockchain
When it was born, Terra had its mission to work on decentralized stablecoins. Therefore, Terra’s internal structure is suitable for this.
As for TRON, they have been launching for no less than 4 years, but only now make Stablecoins, and use their own TRX station. Of course TRON is still capable of doing this function well, but it will be much more difficult than Terra.
Finally, First Mover
Terra has done a great job UST, plus being the leader should have a large number of users.
And USDD was just launched later, and there was nothing more prominent, so the community just considered USDD to be a copy of UST. Since then, there is a high possibility of not sticking with the project for a long time.
Benefits of holding USDD token
Similar to other Stablecoins, USDD is used to exchange with other assets, or participate in activities on projects that support USDD.
Project team, investors & partners
Project team
USDD is a product of TRON, headed by Justin Sun.
Investors
Updating…
Partner
Roadmap & Updates
USDD 1.0: Space
May 5, 2022: USDD was officially released on May 5. TRON DAO Reserve and several organizations in the Whitelist were the first to mint USDD.
At this stage, the management of USDD is entrusted to TRON DAO Reserve and large institutions.
USDD 2.0: ISS
10/10/2022: Launching Testnet, including:
- Pre-release version TRON v5.0 supports USDD.
- TRON v5.0 is deployed on TRON Testnet (Shata and Nile).
- Deploy Oracle to test Price Feed on TRON Testnet SRs.
- TRON Testnet SRs Identify USDD Proposal, USDD Testnet Officially Launched.
USDD 3.0: Moon
November 30, 2022: USDD decentralized network officially launched, including:
- TRON v5.0.
- USDD implements fully decentralized Mint, Swap and Burn. Mint and Burn benefits developed for TRON Mainnet.
USDD 4.0: Mars
December 30, 2022: USDD Mainnet launched, including:
- TRON SRs updated to v5.0.
- TRON SRs start the Price Feed with the maths implemented and ensure the stability of the system.
- TRON SRs initiate Proposals, including VM Proposal and Market Proposal.
- USDD Mainnet officially goes live and TRON DAO Reserve provides Mint and Burn USDD rights to TRON Mainnet.
USDD . token information
Key metrics USDD
- Token Name: USDD
- Ticker: USDD
- Blockchain: Updating…
- Token Standard: Updating…
- Contract: Updating…
- Token Type: Updating…
- Total Supply: Updating…
- Circulating Supply: Updating…
USDD Token Allocation
USDD is produced and burned based on TRX, so there is no Allocation like a regular token.
USDD Token Sale
USDD has no Token Sale.
USDD Token Release Schedule
USDD has no unlock schedule, but only relies on burning TRX to generate USDD.
How to earn and own USDD
You can buy USDD on the exchange after launch, or burn TRX to generate USDD.
USDD . exchange & storage wallet
Storage wallet
Updating…
Exchanges
It is currently unclear where USDD will be traded. I will update details later.
USDD information channels
Similar projects
Terra (LUNA & UST): Blockchain in the Cosmos ecosystem, initially known to many for payment applications such as Chai, Memepay, using Terra’s UST coin to pay. But starting from October 2020, after the Columbus-4 update, Terra has its own Smart contract, officially building an ecosystem.
summary
Above is the latest information about USDD that I have updated, don’t forget to follow the column Coins & Tokens of Techtipsnreview Insights to get the fastest updates on detailed information about the hottest projects and coins/tokens on the Crypto market!
Source: What is USDD? Complete set of cryptocurrency USDD
– TechtipsnReview
