Justin Sun, the founder of Tron, told Bloomberg that the USDD (USDD) stablecoin would be modified in order to avoid a similar fate as Terra.
Sun said that overcollaterization of the algorithmic stablecoin would boost investor confidence, which is an essential part in making sure this investment opportunity flourishes.
The company has a total of $1.37 billion worth of digital assets in reserve, and it plans on maintaining this with a 130% collateral ratio
The most recent data suggests that Tron DAO has acquired Bitcoin (BTC), Tether (USDT), and Tron (TRX) funds to back the stablecoin. According to the website, USDD reserves currently include 14,040.6 BTC (approximately $440 million) , 240 million USDT, and approximately 1.9 billion TRX ($158 million).
In addition to these assets, the statement ensures that the USDD issuance will also be backed by multiple stablecoins, in addition to USDT, such as USD Coin (USDC), TrueUSD (TUSD), and USDJ. The backing can be verified by signatures on block explorers in the TRON DAO Reserve.
Justin Sun, the controversial founder of Tron has announced that due to current Terra's incident, they are speeding up plans for an upgrade. The stablecoin's total supply currently stands at $667 million, according to data provided by CoinGecko.
After the epic implosion of $60 billion Terra in early May, Tron emerged as the third-largest blockchain within the decentralized finance space behind only Ethereum and Binance Chain. Tron's total value locked (TVL) has skyrocketed past $6 billion, with the peak coming at a time when other blockchains are struggling.
It seems like the Tron ecosystem has come out of its slump. The price action, which was barely visible just months ago, is now close to entering the top 10 again. The TRON price is still 64.72% away from reclaiming its previous record high of $0."231673 which was recorded all the way back in 2018!"
In an interview, Sun declined to comment on financial crime allegations after The Verge reported that he was being investigated by US authorities. Tron founder threatens legal action if the media doesn't retract statements defaming him in this story
In December, Sun announced that he had quit Tron to become a WTO ambassador for Grenada.
According to a press release published on Sunday, the stablecoin that seeks to maintain parity with the US dollar has been slightly modified to become the " first overcollateralized decentralized stablecoin ". Launched in early May, USDD is an algorithmic stablecoin based on TRON, whose mechanism mimicked Terra 's stablecoin UST.
TRON founder Justin Sun originally unveiled the project in late April. According to a whitepaper published at the time, USDD would maintain its peg using an algorithmic system pegged to TRON 's native token, TRX; while holding reserves in a handful of cryptocurrencies, including Bitcoin.
By then, USDD was looking like a potential competitor to UST, which was listed as the largest decentralized stablecoin on the market. However, after its colossal crash last month, Sun now appears to be looking to distance its project from the failed coin.