The most important takeaways are:
At the moment, The DeFi TRON ecosystem is experiencing rapid progress in its development.
There are no doubts that it is currently the second largest blockchain in terms of total value, after only BNB Chain and Ethereum.
How can you explain its new algorithmic stable USDD coin? What do you think it is possible to explain the new algorithmic stable USDD coin? On the promises of 30% risk-free yield, it has grown to $545 million.
The USDA Dash has been being used in the same way as the US Terra coin, whose $40 billion death spiral was experienced by the UST Terra solid coin, that had an unprecedented $40 billion death spiral.
The TRON blockchain has been the 3rd most large blockchain with DeFi’s total blockchain value since the launch of USDD, an algorithmic cryptostablecoin that is used to create and develop unprecedented mechanisms similar to the collapsed UTT Terra.
DeFi’s third-largest ecosystem is the TRON ecosystem, which is DeFi’s third-largest.
As of now, the DeFi TRON ecosystem has been benefiting from its new high-yield stablecoin.
The TRON decentralized application ecosystem is thriving with relatively low market conditions created by the DeFi sector following the collapse of Terra earlier this month for the DeFi sector, as well as in terms of its development. For example, at least in terms of total blockchain value.
Defi Llama reports that the DeFi Tron ecosystem grew about 26 percent in the last month, rising from $4 billion to $5.38 billion. It overcame a number of other popular Tier 1 networks, such as Avalanche and Solana, to be the 3rd largest blockchain with total Blockchain value. The overall DeFi sector lost about $90 billion in liquidity in the last month alone. The blockchain value of most leading blockchains has fallen 30% since the Terra collapse.
In fact, the most likely reason for TRON’s development is the rapid rise of the new USDD coin, promising to give its users a “risk-free” interest rate of 30%. The USDD is designed as “cryptocurrency issued by the TRONDAO reserve with an unstable price” with incentives and monetary policy. It has a “built-in incentive mechanism and flexible monetary policy.” In this mechanism, assets will not be able to stabilize on the own, as was the case with Terra Luna tokens and bitcoin reserves. Before it crashes, before it collapses within days of the UST crash.
An article in the white paper describes striking similarities of USDD, UST Terra and US. It is important to not buy USD when USDD is below $1, arbitrageurs can burn it for $1 of the TRX-based cryptocurrency, or even $ 1 from TRON’s own crypto. If USDD is trading above $1 and below $1, arbitrageurs can exchange TRX for $1 or one USD with more dollars minted in the process and expand its production. According to Experts, this mechanism will help ensure that the price returns to the desired $1 peg.
Like the Terraform Lab plan to raise $10 billion in bitcoins to protect the USDD peg, The Foundation of the TRON Foundation has organized the TRONDAO reserve with the same goal: to raise $10 billion in capital to protect $ 10 billion from the UST peg.
While encouraging users to use Stabelcoins to create and place bitcoins in different DeFi applications on Tron, Justin Sun promised that the risk-free interest rate of 30% USDD will be offerd by the network’s controversial founder Justin Sun. The revenue is unclear, but the recent surge in the DeFi TRON ecosystem suggests that the incentive mechanism is working. On May 2, USDD launched on May 2, its market capitalization had grown exponentially, at the moment it has reached a market capitalization of about $545 million. In TRON networks, most USDD products are prohibited in some DeFi protocols. More than half of them get into DeFi protocols on the TRON network.
TRON over the past few months has helped its USDD launch. The Tron DAO reserve has not indicated any risks associated with its new algorithmic cryptographic system, but the Tron DAO reserve has not mentioned any risks associated with its new “stablecoin” in its official documents or public communications. USDD is functioning like UST Terra after dying in a $40 billion spiral line death event. After Terra’s decline, at the time of its decline and UST began to lose his peg in relation with the dollar, it outperformed LUNA’s market capitalization. This indicates the death spiral is on its way. Another time, if USDD continues to rise at this rate, it could surpass TRX’s market capitalization of $7.74 billion in the next phase. TRX should support USDD, it could mean that the Stablecoin will be destroyed. It is possible that this will lead to another destruction of the entire industry.
At this writing, the author owned several other cryptocurrencies. Credibility: At the time of this writing, he owned EETH and several others.