USDD Price Chart Update [USDD]

The USDD price update as of now is $0.9974. In the previous 24 hours, its trading volume was $2,552,587, and its value has decreased by -0.12%. As of now, USDD's live market cap is $741,934,814, and it is ranked as the #111 on the Coincu. USDD has a circulating supply of 0 and a maximum supply of 0.

Introduction to USDD: A TRON Stablecoin

USDD is a stablecoin and digital asset built on the TRON blockchain. It was launched on BNB Chain, Ethereum, and TRON on May 5, 2022. The goal of USDD, according to Justin Sun, is to provide investors with an annual percentage yield of 30%.

The Growing Popularity of the TRON Blockchain

While USDD is relatively new, the TRON blockchain has been in existence for several years and has become one of the largest decentralized platforms with its own cryptocurrency. Originally focused on the Asian market, the Tron Foundation introduced TRON in 2017, and it has since gained global popularity, boasting over 50 million accounts. In terms of market capitalization, the TRON cryptocurrency ranks 31st among all options.

USDD: A Versatile Stablecoin

USDD is a stablecoin built on TRON that will be available on multiple networks. Alongside other stablecoins like Binance USD and Tether, USDD is an algorithmic stablecoin, which means its price stability is managed through algorithms and smart contracts that control the token supply.

How Does USDD Maintain Its Value?

The algorithmic stablecoin system adjusts the token supply based on the price. If the price falls below the desired value, the total number of tokens available decreases. Conversely, if the price exceeds the preferred value, more tokens are circulated to restore the stablecoin's value. This approach allows for greater control over supply and demand.

Justin Sun: The Driving Force behind TRON

Justin Sun, the founder of TRON, is a prominent business executive and entrepreneur. He gained recognition for developing TRON as a blockchain DAO ecosystem in 2017 and also serves as the CEO of BitTorrent, a file-sharing program. Sun's achievements in the cryptocurrency industry led to his inclusion in the Forbes 30 Under 30 list for Asia and China in 2017.

The Controversy Surrounding TRON Stablecoin

When TRON announced its stablecoin, some crypto holders criticized it for being a copy of Terra's UST stablecoin. However, Do Kwon, the founder of Terra, welcomed the initiative and even hinted at the possibility of a future TRON partnership.

Understanding USDD's Functionality

Now let's explore how USDD operates and maintains its price. USDD is available on TRON, Ethereum, and Binance Smart Chain. It was developed with the collaboration of key blockchain entities and endeavors to be one of the most decentralized stablecoins to date. TRON pooled its resources to create USDD, an algorithmic stablecoin with a robust mathematical foundation. When the token price rises, additional tokens are issued to decrease the value of the USDD stablecoin.

Pegged to the U.S. Dollar

The TRON DAO directly manages the USDD stablecoin, which is pegged to the U.S. dollar at a 1:1 ratio. This means that the value of USDD is tied to the value of the U.S. dollar. If you are familiar with Terra's UST, you will find that USDD operates similarly as both are algorithmic stablecoins.

Redemption and Trading

When the stablecoin's price falls below the peg ratio, users have the option to redeem one USDD for one U.S. dollar. Conversely, when the price exceeds the $1 peg, it is possible to trade one U.S. dollar for one USDD.

The Four-Stage USDD Plan by TRON DAO

The USDD stablecoin is expected to follow a four-stage roadmap, consisting of the Space, International Space Station, Moon, and Mars stages. Currently, details are only available for the initial two stages, which focus on strategies and management techniques to maintain the pegged value of USDD.

1.0 Space Stage

In the 1.0 Space stage, major blockchain institutions and the TRON DAO reserve are responsible for managing the USDD stablecoin. The TRON DAO reserve holds custody of $10 billion in liquid assets raised from partners in the blockchain industry. These assets serve as early-stage reserves to ensure the stability of the USDD rate and enable convertibility. Since the launch of the TRON stablecoin on May 5, the TRON DAO reserve has set the risk-free interest rate at 30% per year. They also encourage other centralized and decentralized organizations accepting USDD to implement relatively consistent rates, although adherence to TRON's guidance is not mandatory.

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