Tron DAO’s USDD is Now Over-collateralized by Over 200%, A First for Algorithmic Stablecoins

Summary:

  • The Tron-based USDD stablecoin is now collateralized by over 200% with a guaranteed minimum collateral ratio of 130%.
  • Such backing in reserves is a first for any algorithmic stablecoin in the crypto-verse.
  • Tron’s Justin Sun has promised to keep strengthening the USDD ecosystem for a decentralized future.

The recently launched Tron-based algorithmic stablecoin of USDD is now collateralized by over 200% with a guaranteed minimum ratio of 130%.

According to the team at Tron DAO, USDD’s collateral ratio is now higher than DAI’s at 120%. Consequently, USDD is the first algorithmic stablecoin to be collateralized by over 200% with a minimum ratio of 130%.

The team at Tron DAO further broke down USDD’s reserves as follows:

The TRON DAO Reserve is currently holding 10,500 BTC, 240 million USDT, and 1.9 billion TRX in the reserve account, on top of the 8.29 billion TRX already in the burning contract.

The real-time collateral ratio is now over 200% — a total $1.37 billion of assets backing the 667 million USDD in circulation.

Further checking the Tron DAO Reserve website reveals that USDD’s Bitcoin reserves have increased to 13,040 BTC.

Justin Sun Promises to Strengthen the USDD Ecosystem

To mark the new USDD milestone, Tron’s founder and former CEO, Justin Sun, pointed out that the over-collateralization of USDD was a giant leap forward with the potential of ushering in a new phase for stablecoins. He also promised to strengthen the USDD ecosystem ‘to create an increasingly decentralized future for users far and wide.’

Tron DAO to Set its interest Rate to 30% Per Annum

In addition, Justin Sun announced that the Tron DAO would work towards guaranteeing a 30% interest rate on USDD. He said:

USDD collateral ratio is over 200%!

[Tron DAO Reserve] will also set its basic risk-free interest rate to 30% per annum and facilitates other decentralized and centralized organizations that accept USDD to implement consistent interest rate policies.

USDD is Available on Tron, Ethereum, and BNB Chain

With respect to its availability, USDD is circulating on Tron, Ethereum, and the BNB chain. However, the team has announced plans to expand its availability beyond the three chains.

USDD is also being utilized in numerous DApps and platforms such as SUN.io, Uniswap, PancakeSwap, Curve, Ellipsis, KyberSwap, Poloniex, Huobi Global, KuCoin, Gate.io, and Bybit.

The Tron DAO has also embraced institutional members, including Alameda Research, Amber Group, Poloniex, Ankr, Mirana, Multichain, FalconX, and TPS Capital.

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