- USSD is the first over-collateralized decentralized stablecoin, with guaranteed minimum collateral ratio of 130%.
- The current collateral ratio is over 200% with nearly $1.4 billion worth of assets in the Tron DAO reserve account.
Decentralized stablecoin based on TRON USDD has taken another step by becoming the first oversized decentralized stablecoin (OCDS) in the crypto industry.
A month since its launch on 5 May, USDD has experienced great organic growth as part of its Stablecoin 3.0 development, and this latest upgrade brings to users not only fast transactions, but also the highest collateral ratio within the market.
This follows an upgrade that allows TRON DAO reserve members to both mint USDD by burning TRX and cement stability and credibility for the stablecoin via a mechanism that allows assets to be over-collateralized in the TRON DAO Reserve (TDR).
200% over-collateralized, nearly $1.4 billion in assets
Over-collateralized assets include Bitcoin (BTC), Tron (TRX), and top stablecoins such as Tether (USDT), USD Coin (USDC), TrueUSD (TUSD) and USDJ.
According to data from blockchain explorer Tron TRONCAN, the total circulating supply of USDD is currently just above 667 million. The guaranteed minimum collateral ratio for tokens is at least 130%, which puts it above the 120% for DAI.
The 130% minimum ratio means that every USDD token is backed by $1.3 worth of the above assets. Currently, the ratio is at over 200%, with more than $1.37 billion worth of different assets backing the USDD.
The reserve account contains 10,500 BTC, 240 million USDT and 1.9 billion TRX. Apart from this, a total of 8.29 billion TRX was sent to the burning contract.
The public can access the real-time collateral ratio for the stablecoin 24/7 on the TRON DAO Reserve’s website.
USDD Growth After TerraUSD Collapse
USDD is rapidly gaining traction as the leading decentralized stablecoin, with circulation on the TRON network, Ethereum, and BNB Chain. The stablecoin is also used on multiple platforms, including Poloniex, KuCoin, Huobi Global, and Bybit exchanges.
It’s also available on SUN.io, PancakeSwap, Uniswap, and Curve among decentralized finance (DeFi) platforms.
However, market confidence in algorithmic stablecoins wavered after the dramatic collapse of TerraUSD (USD). The stablecoin, which was backed by over 80,000 BTC among other assets, plummeted and brought the LUNA price down with it.
But TRON founder Justin Sun says USDD is designed to be better than UST and that it is “spearheading the Stablecoin 3.0 era.” According to him, the upgrade adds features that underpin the stablecoin’s stability.
He added”
“The $10 billion reserves pledged by TDR will enable USDD to become the most trusted decentralized stablecoin with the highest collateral ratio in blockchain history. Currently, the collateral ratio of over 200% provides the USDD with a very strong safety net.”
