Tron already launched its stablecoin and it looks very similar to terra USD

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The range of stablecoins or stable cryptocurrencies has recently added a new alternative. It is Decentralized USD (USDD) or “decentralized USD”, a cryptocurrency from the Tron network that has parity with the US dollar and relies on an algorithm for its issuance.

The positive thing about this is that the integration of an algorithmic stablecoin is that it guarantees the inclusion of new projects and blockchain development by having a stable and operable pair for such ecosystem, so most likely we will soon be observing projects in pre-sale and pre-launch phase for the TRX blockchain as LunaFi, Minosis Token, CHO and among all kinds of emerging and promising projects for the Tron ecosystem.

This Tron stablecoin focuses on decentralization, lead developer Justin Sun explained when announcing the project. The idea regarding its market value is that it will maintain 1:1 parity with the US dollar, as do other stablecoins such as Tether (USDT), USD coin (USDC) or DAI (DAI).

The first USDD units were issued on May 5. According to its official Twitter account, its main features are high transaction speed, low fees and scalability potential.

In addition to Tron, the stablecoin is available on Ethereum and BNB Chain networks. Twenty days after its launch, it has already accumulated a market capitalization of USD 544 million, according to CoinGecko data.

On the morning of May 25 (UTC), the cryptocurrency had a brief depeg (i.e., it lost parity with its underlying asset, the dollar) and reached its historical low of USD 0.98, although it has already recovered its original value.

According to the project’s whitepaper, the next stages include the launch of the USDD test network and the main USDD network, projected for October 10 and November 30, respectively. From December 30, meanwhile, USDD would be available for any Tron mainnet user to issue the stablecoin.

For the time being, however, the USDD stablecoin can already be purchased on decentralized finance protocols (DeFi) and decentralized exchanges (DEX) such as Uniswap, Curve Finance, Kyber Network, PancakeSwap, SunSwap and Poloniex. It can also be traded on centralized exchanges such as Huobi, KuCoin, Poloniex, gate.io, Bitget, Bybit and LBank.

With respect to reserves backing investors against potential failures of the algorithm, Tron envisions the creation of the autonomous decentralized Tron Reserve DAO (Tron Reserve), which will initially raise USD 10,000 from investments from “blockchain industry players.” This first stage in USDD’s history, which began on May 5, relies mostly on the participation of institutional players.

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