What Is USDD In Crypto?

Table of Contents

What is USDD?

USDD is an Algorithmic Stablecoin linked to the TRX coin, which applies an algorithm to keep the value of USDD stable at $1. This method is different from regular Stablecoins such as USDT or USDC, because it does not require collateral to support its value.

What is the highlight of this stablecoin?

The way USDD works is similar to Terra’s previous Stablecoin UST or Binance’s busd. A brief description of how it works is as follows:

When the price is higher than $1, users can deposit $1 worth of TRX to receive $1 USDD in return.
When the price is lower than $1, users can deposit $1 USDD to receive back $1 in TRX value.

Among decentralized Stablecoins, not many projects can sustain long term, mainly due to their ability to keep the price stable at $1.

To update prices, TRON uses Oracle with the following mechanism:

Super Representatives (SRs) provide price oracles on the TRON network, and also submit votes on the current exchange rate of USDD against USD.
Votes are calculated based on the number of blocks, taking a weighted average.
Rewards are given to SRs who voted close to the average price, encouraging honesty and accuracy.

Rewards for SRs include Tobin Tax and Spreading Fee, which each swap between USDD and TRX is subject to. The spread rate automatically adjusts to remain stable in highly volatile market conditions.

Comments on the model

Although USDD has performed similarly to UST in the past, it cannot be said that USDD will achieve the same success as its predecessor. There are three factors that USDD is unlikely to achieve like UST:

The first is community quality.

Since launching Smart Contracts, Terra has always received strong support from the community and large funds. In contrast, with TRON, the founder of TRON, Justin Sun, is not really a game creator like CZ or SBF. Furthermore, he left TRON to become the Grenada government ambassador. While this is beneficial for the cryptocurrency market, with TRON, the loss of its founder increases the likelihood of user mistrust.

Related: What is Tron and How Does It Work?

Second is about the nature of Blockchain.

When it was born, Terra determined its mission to focus on Stablecoin. Therefore, Terra’s internal structure is designed in accordance with this goal. On the contrary, TRON has existed for no less than 4 years but only now has it implemented Stablecoin, and uses its TRX coin. Although TRON is still capable of performing this function, it is much more difficult than Terra.

Finally, there is the First Mover.

Terra was successful with UST, and was a pioneer, winning a large user base. In contrast, USDD was only recently launched and has no outstanding unique features, making the community consider it a copy of UST. Therefore, the project’s long-term attachment to the community may not be high.

Benefits of holding tokens

You can buy on Uniswap, pancakeswap to store on Trust netwrok, Metamask.

Similar to other Stablecoins, USDD is used to exchange with other assets, or participate in activities on supporting projects.

Project team, investors & partners

Project team

USDD is a product of TRON, headed by Justin Sun.

Investors

Updating…

Partner

Updating…

Roadmap & Updates

USDD 1.0: Space

May 5, 2022: Officially released on May 5. TRON DAO Reserve and several Whitelist institutions are the first to mint USDD.

At this stage, token management is entrusted to TRON DAO Reserve and large organizations.

USDD 2.0: ISS

October 10, 2022: Launch of Testnet, including:

Pre-release version TRON v5.0 supports USDD.
TRON v5.0 deployed on TRON Testnet (Shata and Nile).
Deploying Price Feed testing Oracle on TRON Testnet SRs.
TRON Testnet SRs confirm USDD proposal, Testnet version officially launched.

USDD 3.0: Moon

November 30, 2022: USDD decentralized network officially launched, including:

TRON v5.0.
USDD implements fully decentralized Mint, Swap and Burn. Mint and Burn benefits are developed for TRON Mainnet.

USDD 4.0: Mars

December 30, 2022: Mainnet launched, including:

TRON SRs updated to v5.0.
TRON SRs start Price Feed with implemented calculations and ensure system stability.
TRON SRs initiate Proposals, including VM Proposal and Market Proposal.
Mainnet officially goes live and TRON DAO Reserve provides Mint and Burn USDD rights to TRON Mainnet.

USDD token information

Key metrics

Token Name: USDD
Ticker: USDD
Blockchain: Updating…
Token Standard: Updating…
Contract: Updating…
Token Type: Updating…
Total Supply: Updating…
Circulating Supply: Updating…

Token Allocation

USDD is produced and burned based on TRX, so there is no Allocation like regular tokens.

Token Sale

There is no Token Sale.

Token Release Schedule

There is no unlock schedule, it only relies on burning TRX for generation.

How to earn and own

You can buy USDD on the exchange, or burn TRX to create.

Conclude

Through the above overview article about stablcoin USDD, AZC.News hopes readers will grasp the basic information about this stablcoin to make their own decisions.