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TRON DAO Announces Its Stablecoin Named USDD

TRON DAO Announces Its Stablecoin Named USDD

TRON, which was initially launched as a competitor to Ethereum, recently announced the launch of stablecoin. The coin has been named Decentralized USD (USDD) and is a decentralized algorithm based on TRON. TRON founder H.E. Justin Sun announces the coin in an open letter posted on Twitter.

This feat has not been achieved by TRON DAO alone. The crypto giant has “joined hands” with other blockchain companies to make this a reality. The new coin will utilise the mathematics and algorithms to keep the coin’s value stable like any nationalized currency while at the same time retaining the pros of any cryptocurrency. This brings in the best of both worlds and makes USDD a lucrative choice for investors.

USDD will be completely decentralized. The currency will be pegged against total TRX assets. TRON DAO is planning to use its reserve to help keep USDD stable. When the value of USDD falls below US$ 1, users and arbitrageurs can send 1 USDD to the system and receive 1USD in the TRX. Similarly, when the value of USDD shoots above USD, users can send 1USD worth of TRX and receive it back in USDD. Tron’s protocols will try to keep USDD in a 1:1 ratio as compared to USD. The regulation of this rate is necessary for this stablecoin to exist.

The fundamental aim of these stablecoins is to ensure the American citizens’ freedom of the currency. USDD on Tron is another step towards achieving that goal.

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