Skip to main content

USDD drives Tron's DeFi TVL surge and compares it to Terra Luna's UST

 


Tron is the third largest network by total value of completed transactions (TVL) in DeFi protocols a month after the launch of its algorithmic stablecoin USDD.


The Justin Sun-led protocol has seen TVL rise above $6 billion over the past 30 days, trailing BNB Chain's $8.8 billion and Ethereum's $71.3 billion TVL.


CoinGecko, a crypto data aggregator, identified the launch of its algorithmic stablecoin USDD as one of the reasons behind the massive increase in its TVL. USDD was launched on May 5th and its market cap is currently over $621 million.


This rapid growth has led some to draw a parallel between it and the TerraUSD, which collapsed last month. Before the collapse of UST, the stablecoin had reached a market cap of over $30 billion.


Many believe that the similarities between Tron's USDD and Terra UST are obvious as both are algorithmic stablecoins that rely on market arbitrage to maintain their value.


Tron-based protocols also offer significant returns, similar to the Anchor protocol in Terra's ecosystem. JustLend, which holds the majority of TVL, offers a 23% yield, well above the 19.5% that Anchor offered.


Another protocol, SunSwap, offers users up to 64% if they stake USDD-TRX liquidity tokens. These high returns have attracted users. JustLend's TVL rose to $2.98 billion on June 1 from $1.79 billion on May 1st.


Some critics have already said that USDD, like UST, will fail. Meanwhile, the value of TRX, Tron's token, has risen alongside TVL. According to Coincap data, TRX is trading at $0.082 after surging over 24% over the past 30 days.

70.8% of retail investor accounts lose money when trading CFDs from this provider. You should consider whether you can afford the high risk of losing your money.


Justin Sun insists USDD can survive

In a recent blog post, Justin Sun revealed that USDD would learn from the epic case of Terra's UST. According to the post, USDD would always be overcollateralized by low volatility assets like USDT, USDC, Bitcoin and other digital assets.


Sun went on to say that USDD supply would be maintained in phases. In the first phase, those using the algorithmic stablecoin will receive a fixed interest rate of 30%, capped at 2B USDD.


In the second phase, those who choose to lock their USDD liquidity for a year would continue to receive a high APR, while those who lock their liquidity for a shorter period would receive lower rates.


He concluded that USDD will be extended to other blockchains as the industry grows. The stablecoin is currently active on Tron, BNB Chain and Ethereum.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
Clash Of Streamers - Earn Crypto while Playing all for Free! - Play smart! 
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