Tron Fixes Its USDD Stablecoin To Avoid Replicating Terra (LUNA) and TerraUSD's (UST) Fate

Tron TRX/USD launched its USDD USDD/USD algorithmic stablecoin last month and now it is making major changes to its architecture to avoid the fate of Terra LUNA/USD and the algorithmic stablecoin that brought it down TerraUSD UST/USD.

What Happened: Tron is boosting USDD's transparency and increasing its collateral reserves to a minimum of 130%, according to a Sunday Bloomberg report. Tron founder Justin Sun said that "this has been in the plan, but Terra/Luna definitely accelerated and prioritized this for our team." He added:

Trade Bitcoin, Ethereum, and More Instantly — No Wallets, No Hassle

Speculate on price movements, claim up to $200 in bonuses, and start with risk-free paper trading with crypto futures on Plus500.

Disclosure: 82% of retail CFD accounts lose money

“We want to have USDD to be overcollateralized, which I think will make market participants more comfortable about using us in the future,” he added.

See Also: How To Earn Free Crypto

USDD, with its supply of about $667 million, claims a collateralization ration of 218% and a guaranteed minimum collateral ratio of 130%. Official data shows that there is over $787 million worth of collateral assets backing the stablecoin's supply of under 670 million coins.

$TRXTRON

$0.2649-1.15%