With the Federal Reserve on the left and USDD on the right, Justin Sun wants to bring stablecoins to the era of decentralization?

Stablecoins are becoming the focus of the encryption industry, and decentralized stablecoins are expected to seize the scepter of this track and rewrite the history of the stablecoin ecosystem that has relied heavily on centralized systems for many years.

According to the latest data from CoinGecko, the current total market value of the encryption industry is US$2.03 trillion, which has dropped from US$2.34 trillion at the beginning of the year, while the market value of stablecoins has exceeded US$190 billion, an increase of more than US$22 billion since 2022. On the one hand, the market continues to fluctuate, and on the other hand, stablecoins are in full swing, and their status in the encryption industry has been unprecedentedly improved.

At the same time, the internal structure of the stablecoin track is also changing. As innovators and latecomers, decentralized stablecoins are grabbing more market share. The latest market capitalization of UST has surpassed BUSD to rank third, while Dai is firmly the fifth largest stable currency in the industry. More importantly, as the issuing public chain of TRC20-USDT with the most (over 12 million) industry users, TRON has also announced in a high-profile manner that it will launch the decentralized algorithm stablecoin USDD.

This is clearly an internal overhaul or self-correction in the crypto world. After all, as a bridge connecting virtuality and reality, as the most important traffic entrance in the industry, if stablecoins always rely on a centralized system, they will certainly not be able to support the ultimate mission of blockchain leading decentralization.

So, why is Tron, which is already the leader in the stablecoin track and enjoys the most user bonuses, so determined to develop new decentralized stablecoin businesses, and what is worth paying attention to in the upcoming USDD?

Some information can be mined from the two open letters of Justin Sun on April 21. In fact, before announcing that USDD would be issued, Justin Sun was the first to publicize the establishment of TRON DAOReserve. As the name suggests, through the decentralized DAO system, the blockchain decentralized central bank led by the TRON network will host the financial reserve assets jointly raised by the TRON network and other blockchain promoters.

This idea is undoubtedly constructive. Because of the existence of the blockchain decentralized central bank, it can first release sufficient liquidity in extreme industries, which is conducive to stabilizing the market and alleviating panic, thereby better protecting the interests of encrypted users. This is a necessary measure for the encryption market to move towards a more mature stage, and it is also an important sign. After all, a more stable and secure market is conducive to attracting new blood into the market.

More importantly, the Tron Joint Reserve, which plans to raise $10 billion in assets, provides a strong endorsement for the upcoming USDD, which is unique in the industry. As we all know, algorithmic stablecoins focus on getting rid of the influence of centralized policies, but USDD with the support of the Federal Reserve Bank has much more confidence and advantages. After all, in the context of the constant influx of novices on the stablecoin track, "Why should users use your stablecoin" is a question that every project party must answer.

As far as algorithmic stablecoins are concerned, some projects without any collateral support, such as ESD and BASIS, have experienced skyrocketing and plummeting, and MIM has also experienced serious unanchoring. Therefore, how to give users enough confidence in the newly entered algorithmic stablecoins is particularly critical.

On the one hand, the guarantee of USDD stability comes from its anchoring and pegged issuance with TRX, which absorbs short-term volatility; on the other hand, when extreme industries appear, the Federal Reserve’s tens of billions of dollars of highly liquid asset reserves can also be sold in time Stabilize the price of USDD.

In addition to the double insurance of stability, USDD is also impressive in terms of incentives. Corresponding to Sun Ge’s consistent arrogance, the Federal Reserve Bank set the base risk-free interest rate of USDD at 30% at the beginning of its establishment, which can be said to be a huge investment. Looking back at the history of TRON’s version of USDT as a newcomer to the top of the industry’s most mainstream stablecoin, it is actually not unrelated to TRON’s policy of directly rewarding users with gold dollars at the beginning of its release. From this perspective, the supply and liquidity of USDD after it goes online is not a problem.

But the reason why USDD is so exciting is not only that it basically has the preconditions to gain a foothold in the market. Based on the BTTC (BitTorrent Chain) cross-chain protocol, USDD will be able to enter Ethereum and BSC for circulation with almost no barriers after issuance, and naturally has the differentiated advantages of multi-chain deployment. In the future, with the continuous growth of BTTC, USDD will also cover more mainstream public chains, bringing convenience to users on different blockchains and improving the efficiency of capital utilization. In the context of an increasingly strengthened multi-chain structure, this is expected to help USDD quickly squeeze into the front row of stablecoins.

Just like Sun Yuchen’s pursuit of global financial inclusion at the industry level and the ultimate idealism of exploring space at the personal level, the birth of USDD comes with some advanced and transformative genes.

Article source: TRX number one player

Article source: TRX number one player