Article Summary, Automatically Generated By AI
Summary of USDD
Key Points
- USDD is a stablecoin issued by the TRON DAO Reserve, pegged to the US dollar.
- It’s backed by cryptocurrencies like Bitcoin, Ethereum, and TRON, and is over-collateralized for stability and security.
- Founder Justin Sun launched USDD on May 5, 2022, on the TRON blockchain, with availability on Ethereum and BNB Chain.
- USDD is issued and redeemed via smart contracts on TRON, allowing for fast, secure, and transparent transactions.
- A decentralized community oversees USDD’s management and development through the TRON DAO Reserve (TDR).
Numbers and Figures
About USDD: A Stablecoin Pioneer
Introducing USDD: A Stablecoin for the Modern Era
USDD is a stablecoin issued by the TRON DAO Reserve, pegged to the value of the US dollar, thereby providing a reliable, decentralized cryptocurrency for seamless blockchain transactions. This versatile digital asset can be utilized for a multitude of purposes, including payments, trading, staking, and as a secure store of value.
USDD is fortified by a diverse array of cryptocurrencies, comprising Bitcoin, Ethereum, and TRON. To guarantee unwavering stability and robust security, the reserve is deliberately over-collateralized, thereby maintaining a surplus of assets that exceeds the current circulating supply of USDD.
The Visionaries Behind USDD: Meet the Founders
Justin Sun, the visionary founder of TRON, is the mastermind behind the USDD stablecoin. Launched on May 5, 2022, USDD operates on the TRON blockchain, with additional availability on Ethereum and BNB Chain, further expanding its reach.
Unveiling the Unparalleled Characteristics of USDD
USDD is minted and redeemed through the deployment of smart contracts on the TRON network, facilitating swift and secure transactions, while ensuring transparent and tamper-proof records of USDD issuance and redemption. Additionally, this mechanism enables users to participate in staking pools.
A decentralized community of stakeholders assumes a pivotal role in overseeing the management and development of USDD, with decision-making authority vested in the TRON DAO Reserve (TDR) to act on behalf of the broader community. As the primary custodian of USDD, the TDR is entrusted with the critical responsibility of safeguarding the currency’s value and maintaining a stable exchange rate.
Established as a distinct financial entity, its primary objective is to safeguard the Tron ecosystem from the far-reaching consequences of prolonged economic downturns, financial turmoil, and volatile exchange rates affecting both centralized and decentralized Tron stable currencies.
Its primary functions encompass serving as a lender of last resort, regulating risk-free interest rates, managing liquidity through the strategic allocation and restriction of funds, and implementing monetary and exchange rate policies.
The Circulating Supply of USDD Coins: An Overview
The USDD stablecoin is designed to maintain a steadfast 1:1 parity with the US dollar, ensuring that for every USDD coin in circulation, a corresponding amount of US dollars is held in reserve, thereby guaranteeing a stable value.
A staggering $2 billion worth of USDD has been authorized, with an additional $1.25 billion worth of coins awaiting issuance, pending authorization.
As of June 2023, the total supply of USDD stands at approximately $741,000, with a substantial collateral reserve of around $1.2 billion, primarily composed of TRX, BTC, and TUSD assets.
The USDD Network’s Robust Security Framework
The security of any stablecoin is inextricably linked to the stability of its underlying assets. Consequently, the USDD protocol adopts a prudent approach by over-collateralizing with highly liquid assets, comprising BTC, TUSD, and TRX, thereby ensuring a robust foundation.
To maintain currency stability in the face of fluctuating reserve asset values amidst adverse market conditions, the protocol’s monetary policy enables dynamic adjustments to the reserve asset ratios.
Where to Acquire USDD: A Comprehensive Guide
USDD is proudly listed on a diverse range of esteemed crypto exchanges, including KuCoin, PancakeSwap (V2), Uniswap (V3), SushiSwap, Gate.io, Poloniex, Huobi, Bybit, and many more.
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