Tron DAO’s USDD is now over-collateralised by over 200%, a first for algorithmic stablecoins

Summary:

• The Tron-based USDD stablecoin is now over 200% collateralized, with a guaranteed minimum collateralization ratio of 130%.
• Such a backup of reserves is a first for any algorithmic stablecoin in the crypto-verse.
• Tron’s Justin Sun has promised to continue strengthening the USDD ecosystem for a decentralized future.

USDD’s recently launched Tron-based algorithmic stablecoin is now over 200% collateralized with a minimum guaranteed ratio of 130%.

According to Tron DAO team, USDD’s collateral ratio is now 120% higher than DAI’s. Consequently, USDD is the first algorithmic stablecoin to be over 200% collateralized with a minimum ratio of 130%.

The Tron DAO team has further broken down the USDD Reserves as follows:

The TRON DAO reserve currently holds 10,500 BTC, 240 million USDT and 1.9 billion TRX in the reserve account, in addition to the 8.29 billion TRX already in the burning contract.

The real-time collateral ratio is now over 200% – a total of $1.37 billion in assets backing the $667 million USDD in circulation.

Another review of the Tron DAO Reserve website shows that the USDD’s bitcoin reserves have increased to 13,040 BTC.

Justin Sun promises to strengthen the USDD ecosystem

Speaking of the new USDD milestone, Tron founder and former CEO Justin Sun pointed out that USDD over-collateralization is a huge leap forward with the potential to usher in a new phase for stablecoins. He also pledged to strengthen the USDD ecosystem “to create an increasingly decentralized future for users far and wide.”

Tron DAO sets its interest rate at 30% per year

In addition, Justin Sun announced that the Tron DAO will work towards guaranteeing a 30% interest rate on USDD. He said:

USDD Collateral rate is over 200%!

[Tron DAO Reserve] will also set its risk-free base rate at 30% per annum and facilitate others decentralized and centralized organizations that accept USDD to implement a consistent interest rate policy.

USDD is available on Tron, Ethereum and BNB Chain

In terms of its availability, USDD circulates on Tron, Ethereum, and the BNB chain. However, the team has announced plans to expand its availability beyond the three chains.

USDD is also used in numerous DApps and platforms such as SUN.io, Uniswap, PancakeSwap, Curve, Ellipsis, KyberSwap, Poloniex, Huobi Global, KuCoin, Gate.io and Bybit.

The Tron DAO has also added institutional members including Alameda Research, Amber Group, Poloniex, Ankr, Mirana, Multichain, FalconX and TPS Capital.

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