Tron plans to raise capital for its stablecoin
Tron announces its plan to significantly raise capital to back its stablecoin
designed by Justin Sun as. This structure of USDD looks identical to Terra’s collapsing stablecoin UST.
According to a Tron spokesman, the current reserve includes 14,040 BTC (about $418 million), 140 million USDT and 1.9 billion TRX.
Justin Sun said:
“We want to upgrade USDD to a hybrid model. We have an algorithmic stablecoin on one side and a TRON DAO reserve on the other.”
USDD follows its algorithmic plan, price of the asset by trading between TRX, Tron token and USDD to keep stable against the dollar. to encourage arbitrageurs. Just like Terra, Tron has signaled to create billions of dollars worth of bitcoin and altcoin reserves to support USDD during extreme market conditions. However, as previously mentioned, this plan did not benefit Terra’s UST.