Skip to main content

TRON only yields 11% interest

 


Since the spectacular fall of Terra-Luna, attention has been drawn to the Tron Coin. To be more precise, on the stablecoin USDD, which is also based on an algorithm. However, this only yields 11% interest instead of the promised 30%.


“We want the most decentralized stablecoin in human history.”


At least that ’s how TRON founder Justin Sun sees the future of the coin . Specifically, it is about the stablecoin USDD. Interest (APY) of 30% should earn users for mere staking. Sun even publicly admitted that this was a marketing move.


"It's a marketing strategy to get a lot of people involved in the growth of the stablecoin."


Has the founder done enough marketing? On the JustLend platform, which guaranteed the 30%, it is now only 11.60% interest.

The Tron DAO or Justin Sun have at least not yet commented on this. As the APY has been steadily declining for the past few days, this could continue. Despite these circumstances, USDD yields the highest interest rate in the current bear market at 11.6%. You have to keep in mind that all you have to do is stake your USDD on the platform.


Where one door closes, another opens: On the DeFi platform sun.io you can get up to 69% APY in the liquidity pool USDD-TRX! 

Although the APY for the stablecoin USDD is getting low, the whole blockchain is becoming more and more popular. The project is enjoying increased demand, especially in the DeFi market – given the difficult market conditions. Tron is among the top 3 DeFi blockchains with a Total Value Locked (TVL) of almost $6 billion. Only Ethereum and Binance Smart Chain rank ahead of Tron . Hats off!


In just 3 months, the TVL could increase by 22 times! In February, this was still 250 million US dollars and Tron was not even among the top 20 DeFi projects. Can this growth continue indefinitely?


Does an algorithmic coin work?

As we saw with the example of the Luna stablecoin UST, it failed. This had promised interest of around 20%, which is why users were suspicious of Tron ’s initial 30%. However, Sun does not see the problem in the algorithm itself :


“I still believe in algorithmic stablecoins. We can't blame the algorithm just because Luna collapsed."


In his opinion, the rapid growth of Luna 's UST was the key factor. In contrast, USDD is designed to achieve a significantly smaller market capitalization as well as being over-hedged.


The algorithm is otherwise the same as in Luna . When USDD price fluctuates around $1, arbitrage traders can exchange $1 in Tron tokens for $1 USDD. Depending on whether the stablecoin is currently more expensive or cheaper than 1 US dollar, traders make a profit with TRX or USDD.


For comparison, UST had a market cap of $19 billion at the time of the collapse. USDD is currently at 0.5 billion.


According to Sun, a $10 billion reserve of TRX and BTC including a mix of stablecoins USDT, USDC, BUSD, DAI and TUSD will back its native stablecoin USDD.


Here the question arises to what extent the coin can still be described as 100% decentralized? The stablecoins listed above are partially backed by central institutions and are backed by assets such as stocks, bonds or the US dollar.


Only the future will tell if Tron will succeed with the USDD.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

The 5 largest platforms for non-fungible token (NFT) collectibles

  Since the beginning of 2021, non-fungible tokens (NFT) have had no holding back and the sector is setting new records almost every day.  More and more artists, stars and brands are realizing the potential - NFT are well on their way to catapulting the crypto space into the mainstream.  But which collectibles are currently the most popular? What are NFT? NFT are unique tokens that cannot be exchanged one-for-one for an equivalent token.  Any asset that is tokenizable can be an NFT.  This includes, for example, (digital) works of art, trading cards, game items and crypto domains.  Theoretically, however, real estate or securities can also be mapped as NFT. NFTs can be used to transparently map ownership structures on a public blockchain.  This allows them to store value just like real objects, even if additional copies are easy to make.  For example, the original picture of the Mona Lisa is significantly more valuable than a photo, as everyone kno...
11 comments
Read more

CARDALONIA: THE CARDANO METAVERSE OPENS THE GATES!

  Have you ever been to Cardalonia? With these words, the Cardano Metaverse called Cardalonia starts the gates. In this 3D world, developers and users can interact with each other. First of all, users have to create an individual character with which they can move online. After that you can enter one of the worlds built by developers with this character. You can also purchase your own land in the Cardano Metaverse via the marketplaces in Cardalonia . This is secured by Cardano's blockchain technology and therefore offers a relatively secure transfer of ownership. Since these are only digital plots of land, it is not yet entirely clear when the plots of land are purchased whether they can also be sold again in the future. A possible profit cannot be estimated at the moment. In Cardalonia, the cryptocurrency Lonia is used. The maximum amount of tokens in circulation is 100,000,000. The team consists of Alice Sand (Co-Founder), Vasil Air (CTO) and Dustan Water (Fullstack Developer). T...
Post a Comment
Read more

Cardano: This is the vision that founder Charles Hoskinson has

  The Altcoin Cardano has tended to decline in recent weeks.  The Alonzo upgrade was supposed to bring improvements, but it soon turned out to be a disappointment.  Cardano founder Charles Hoskinson presented his vision for the cyber motto in a live Twitter video. • Cardano in the last few months under pressure • Charles Hoskinson explains his Cardano vision via Twitter • Security and privacy at the center The cryptocurrency  Cardano  has had a difficult few months.  While founder Charles Hoskinson's cyber motto has had a strong run in 2021, it has been steadily downhill in recent months.  Cardano is faced with some difficulties.  The so-called Alonzo upgrade went live in mid-September, for which crypto fans had high hopes, but which soon turned out to be a disappointment.  The upgrade should make it possible to use smart contracts on the cryptocurrency as well.  It soon turned out, however, that although these were entered into Cardano,...
Post a Comment
Read more