TRON refines USDD into an overcollateralised stablecoin

The TRON team intends to support the overcollateralisation of the algorithmic stablecoin USDD to avoid a crash akin to TerraUSD. The founder of the project, Justin Sun, said this to Bloomberg.

According to the site, at the time of writing there are 667.5 million USDD in circulation, backed by reserves in Bitcoin, USDT and TRX worth more than 225% of the value.

“It was in the plan, but Terra/LUNA certainly accelerated and shifted priorities for our team. We want USDD to be overcollateralised, which will make its use more comfortable for market participants,” Sun said.

In the пресс-релизе the developers stated that they would maintain reserves at no less than 130%. In addition to those listed on the site, high-liquidity collateral assets will include several stablecoins such as USDC, TUSD and USDJ.

Sun said that one of the main lessons from the Terra crash for him was the passive policy of the Luna Foundation Guard, which consisted of buying and selling Bitcoin. It was easy to foresee, which facilitated the attack, he noted.

“The TRON DAO will be very active and less predictable. You make the market feel comfortable, but you do not disclose too much information,” emphasised Sun.

Earlier he stated that at the initial stage the collateral backing USDD would amount to $2 billion, and in the longer term $10 billion.

In April, the TRON team announced the launch of the stablecoin анонсировала запуск стейблкоина. On 5 May the coin entered into circulation.