Crypto Billionaire Justin Sun Makes Case for Stablecoin USDD
Tron founder Justin Sun is making the case for why Decentralized USD (USDD) is different than Terra’s failed decentralized UST stablecoin.
In an interview with CoinGecko, Sun says that USDD, Tron’s algorithmic stablecoin, is a hybrid that uses the best aspects of every USD-pegged asset on the market.
“I will say I think USDD is a hybrid model of DAI, UST, and other stablecoins. So basically we studied all the algorithms in the decentralized stablecoin markets. And then we basically took advantage of all the stablecoins here and made the better choices for the traders in the market.
I think first of all, the disadvantage of Ethereum and the Bitcoin blockchain is Ethereum and the Bitcoin blockchain, they don’t have native stablecoins, so I think for Bitcoin, because it’s not a smart contract platform, but Ethereum… Even though we have DAI, basically I think DAI is a decentralized stablecoin on Ethereum.
But be aware, DAI is not blockchain-based, DAI is developed on Maker. Even though you use ETH as collateral and to mint DAI, the governance structure is not using ETH as the governance structure. It’s using MKR for the structure, which also means Maker is just creating smart contracts on Ethereum. So it’s not an Ethereum blockchain-based stablecoin.
So I think because stablecoins are way too important, it’s basically the foundation of the industry, and that’s why first of all we need to have a blockchain-based stablecoin. LUNA is a blockchain based stablecoin. So LUNA is the token for the blockchain and you can use LUNA to mint UST. But the problem for LUNA and the UST is that they only have one correlation. So basically all the UST is 100% based on LUNA, which I think caused this kind of bad death spiral…”
At time of writing, USDD has a market cap of $747 million. It briefly lost its peg for several weeks in June of this year but has been trading steady at $1 since.