The founder of the TRON network, Justin Sun, launched the decentralised USD token in collaboration with other blockchain industry leaders. The coin is a relatively new decentralised stablecoin and does not rely on centralised institutions but enables exchange in both centralised and decentralised platforms. It leverages utility in mathematics and algorithms to provide financial freedom to all users. It is not affected by market volatility with the USDD protocol maintaining its stability of 1:1 against the US dollar. Several mainstream digital assets, such as TRX, BTC, and USDT, provide over-collaterisation of the token to secure it with the current collateral ratio set at over 300% and a guaranteed minimum collateral ratio of 130% exceeding the 120% required for DAI. The Decentralised USD is chain agnostic circulating on TRON, Ethereum, BSC, and other networks via the cross-chain protocol BitTorrent Chain and similarly provides a fast and affordable experience on the network.
A Bit About Decentralised USD
Justin Sun launched the algorithmic stablecoin in April 2022 as a decentralised stablecoin whose value is guaranteed by the TRON DAO reserve. The reserve guarantees its price stability by over-collateralisation with several mainstream digital assets including TRX, BSC, and USDT with the collateral ratio set at a minimum of 130%. The stablecoin facilitates payments for transactions and gains on interest on a stake by resolving short-term price fluctuations and cyclical price risks with its responsive monetary policy and mintage mechanism by being pegged to the most widely applied fiat currency, USD. Still, Europeans might wonder when Decentralized EUR will go live? Meanwhile, EuroC and Tether EUR (EURT) are two of the most used European stablecoins.
Decentralized USD is an over-collateralized decentralized, algorithmic stablecoin.CryptoLists.com
USDD is a stablecoin that was launched in April 2022 by Justin Sun. Since its inception, USDD has been operating on TRON’s network. Unlike other stablecoins, USDD is decentralized. Its value is pegged to the USD fiat currency. The coin follows an elastic monetary policy to achieve its low volatility status. Whenever the decentralized USD’s value deviates upwards away from the pegged value, the set protocol expands the circulating supply of USDD by burning TRX and minting USDD. Upon increasing the supply with demand being held constant, its price gradually falls to the pegged value. On the other hand, when the value falls below the pegged price, the demand and supply forces come into play to correct the error. Investors will be enticed to burn their USDD and mint their TRX resulting in a contraction of USDD supply and increasing the price to the pegged value. The coin is over-collateralised by holding cryptocurrencies such as TRX, BTC, and other stablecoins in the TRON DAO reserve.
Utility of Decentralised USD?
The USSD stablecoin provides a sense of security to investors due to its low volatility. The Tron DAO reserve acts as the custodian of the coin and absorbs volatility by minting and or burning TRX to maintain stability. The token resolves short-term price fluctuations and cyclical price risks through its responsive monetary policy and mint mechanism. Decentralised USD provides a stable digital currency for electronic payments with its currency peg to the USD ensuring a stable decentralised system. Investors trading and swapping USDD gain utility from it whenever a high reward is attached to a staking opportunity. The rewards might be on the higher end of an APR of 60% or an APY of 30%.
Decentralised USD Price details
ERC20 Contract address: 0x0c10bf8fcb7bf5412187a595ab97a3609160b5c
›› Details & Tokenomics
Advantages of Decentralised USD
+ USDD is 300% over-collateralized by several wellknown assets such as BTC and TRX.+ USDD circulates on several other networks via the cross-chain protocol BitTorrent Chain.
+ The Decentralized USD offers its users a low transaction cost.
+ The token is independent of any centralized regulations authority.
+ It has a guaranteed stability protocol in place.
Disadvantages
- The USDD token lost its peg in June 2022 raising concerns to investors.- There are observed similarities with UST with concerns over its crushing.
- USDD can face de-pegging if TRX experiences a further significant fall.
- A crush of the stablecoin may result in a crush of Tron (TRX).
- Any algorithmic stablecoin requires caution in investing.
Costs
▪ Rated at 10/10The USDD has low costs whenever one makes a stablecoin swap. Super Representatives of its host's network receive an incentive from these fee incomes. There is a minimum spreading fee for each swap between USDD and TRX of 0.5%. There is an upcoming Tobin Tax to apply on the swap of decentralised USD with other stablecoins once more stablecoins are introduced. The Tobin tax is a fixed fee rate that depends on the stablecoin involved.
Reputation and Buzz
▪ Reputation rated at 8/10▪ Buzz rated at 9/10
With the witnessed DE pegging of the USDD and news of the DOA reserve taking financing to purchase TRX in an attempt to stabilize USDD, investors can’t help but compare the stablecoin to UST. Investors have been comparing the two stablecoins since they seem to have identical paths. Several online forums speculate that further de-pegging of the stablecoin will lead to the collapse of the TRX, a situation similar to the crushing of the LUNA token. However, to avoid this outcome, Justin Sun has revealed that the stablecoin USDD has been over-collateralized by other stable assets, including USDT, Bitcoin, and TRX. Even though the value of USDD has kept stabilizing, investors are still skeptical about the volatility of the stablecoin and are still monitoring its patterns. Others wonder: when will regulation come for stablecoins?
FAQ
What is the current USDD supply in the market?
The current circulating supply of USDD stands at 745.3 M USDD.
What is the current collateral ratio of decentralised USD?
The current collateral ratio is over 300% with a guaranteed minimum of 130%
Which digital assets contributes to the over collateralised decentralised USD?
Multiple high liquidity digital assets secure the token, including: Tron (TRX), Bitcoin (BTC) and Tether (USDT).
Screenshots from Decentralised USD
More sites where to buy/sell/trade Decentralised USD
Below you can see some other platforms, exchanges and/or brokers where you can buy, sell or trade this token. Click on the logo to read our review.
Decentralised USD details and tokenomics
BSC Contract address: 0xd17479997f34dd9156deef8f95a52d81d265be9c
MATIC Contract address: 0xffa4d863c96e743a2e1513824ea006b8d0353c57
Huobi's stablecoin USDD depegs
