{"id":4629,"date":"2022-06-02T10:08:17","date_gmt":"2022-06-02T10:08:17","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=4629"},"modified":"2022-06-02T10:08:17","modified_gmt":"2022-06-02T10:08:17","slug":"usdd-is-fueling-trons-defi-tvl-rise-draws-comparison-with-terras-ust","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4629","title":{"rendered":"USDD is fueling Tron\u2019s DeFi TVL rise, draws comparison with Terra&#8217;s UST"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/> \ud83d\udc4b Want to work with us? CryptoSlate is hiring for a handful of positions!<\/p>\n<p style=\"font-weight: 400;\">Tron has become the third-largest network by total value locked (TVL) in DeFi protocols a month after launching its algorithmic stablecoin, <strong>USSD<\/strong>.<\/p>\n<p style=\"font-weight: 400;\">The <strong>Justin Sun<\/strong>-led protocol saw its TVL rise to over $6 billion within the last 30 days, placing it behind BNB Chain with $8.8 billion and Ethereum with $71.3 billion TVL.\u00a0<\/p>\n<p style=\"font-weight: 400;\">CoinGecko, a crypto data aggregator, identified the launch of its algorithmic stablecoin, USDD, as one of the reasons behind the massive rise in its TVL. USDD was <strong>launched<\/strong> on May 5, and its market cap is currently above $621 million.<\/p>\n<p lang=\"en\" dir=\"ltr\">Total value locked (TVL) in #TRON soars to $6B, surpassing the likes of Avalanche, Solana, and Polygon chain.<\/p>\n<p>This is partially due to the growth of its algorithmic stablecoin $USDD, which recently crossed the $600M market cap.<\/p>\n<p>\u2014 CoinGecko (@coingecko) May 30, 2022<\/p>\n<p style=\"font-weight: 400;\">This rapid growth has led to some drawing a parallel between it and the <strong>TerraUSD<\/strong>, which imploded last month. Before <strong>UST\u2019s collapse<\/strong>, the stablecoin had reached over a $30 billion market cap.<\/p>\n<p style=\"font-weight: 400;\">Many believe the similarities between Tron\u2019s USDD and Terra UST are evident as both are algorithmic stablecoins relying on market arbitrage to maintain their value.<\/p>\n<p style=\"font-weight: 400;\">Tron-based protocols also offer significant returns similar to what Anchor protocol offered on Terra\u2019s ecosystem. JustLend, which holds most of the TVL, offers an APY of 23%, far above the 19.5% that Anchor offered.<\/p>\n<p style=\"font-weight: 400;\">Another protocol, SunSwap, offers users up to 64% when they stake USDD-TRX liquidity tokens. These high annualized returns have drawn users to these protocols. JustLend\u2019s TVL went from $1.79 billion on May 1 to $2.98 billion on June 1.<\/p>\n<p style=\"font-weight: 400;\">Already, some critics have said that USDD will fail just like UST, with some saying it doesn\u2019t qualify as an algorithmic token.\u00a0<\/p>\n<p lang=\"en\" dir=\"ltr\">As far as I can tell $USDD is not an algorithmic stablecoin. The only interaction that the TRD members can do is to burn TRX to get USDD. I see no contract to go the other way, and no algorithm adjusting either mechanism, except that minting depends on oracle price of TRX<\/p>\n<p>\u2014 Bennett Tomlin (@BennettTomlin) May 28, 2022<\/p>\n<p style=\"font-weight: 400;\">Meanwhile, Tron\u2019s native token TRX has seen its value rise in tandem with the TVL. According to CryptoSlate data, <strong>TRX<\/strong> is trading for $0.08 after rising by over 24% within the last 30 days.<\/p>\n<h2>Justin Sun insists USDD can survive<\/h2>\n<p style=\"font-weight: 400;\">In a recently published blog post, Justin Sun revealed that USDD would be learning from the epic fall of Terra\u2019s UST.\u00a0<\/p>\n<p style=\"font-weight: 400;\">According to the post, USDD would always be over-collateralized by low volatile assets like <strong>USDT<\/strong>, <strong>USDC<\/strong>, Bitcoin, and other digital assets.<\/p>\n<p style=\"font-weight: 400;\">Sun continued that USDD\u2019s supply would be sustained in phases. In the first phase, those who stake the algorithmic stablecoin will receive a fixed 30% APR, and it would be capped at 2B USDD.<\/p>\n<p style=\"font-weight: 400;\">In the second phase, those who choose to lock their USDD liquidity for a year would continue to receive high APR, while those who lock theirs for a shorter period would receive lower rates.<\/p>\n<p style=\"font-weight: 400;\">He concluded that USDD would expand to other blockchains as the industry grows. Presently, the stablecoin is active on Tron, BNB Chain, and Ethereum.<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/usdd-is-fueling-trons-defi-tvl-rise-draws-comparison-with-terras-ust\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udc4b Want to work with us? CryptoSlate is hiring for a handful of positions! Tron has become the third-largest network by total value locked (TVL) in DeFi protocols a month after launching its algorithmic stablecoin, USSD. The Justin Sun-led protocol saw its TVL rise to over $6 billion within the last 30 days, placing it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4630,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-4629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4629"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4629\/revisions"}],"predecessor-version":[{"id":4631,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4629\/revisions\/4631"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4630"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}