#sun continues to surge.
It’s time to be careful, let’s take a look at this change.
Sun Ge starts to speak.
Sun Yuchen’s USDD stablecoin loses Bitcoin support. This move makes
USDD relies on Tron’s native token TRX,
TRX has recently surged due to the promotion of meme coins.
USDD, a stablecoin issued by TRON DAO Reserve, has lost Bitcoin support, and 12,000 BTC have been removed from its previously listed collateral addresses. Without about $726 million worth of Bitcoin, USDD is now mainly supported by TRX, the native token of the Tron blockchain.
“Any collateral holder is free to withdraw any amount without anyone’s approval,” Sun Yuchen wrote, comparing the operation to MakerDAO. He said that USDD is not capital efficient and has a “long-term collateralization ratio” of more than
“TRON DAO Reserve plans to spend time in the future to upgrade USDD to make it a more competitive decentralized stablecoin in the market.”
The impact of TRX volatility on USDD
TRX volatility complicates the complexity of collateralization, and the DAO has previously stated that TRX volatility will not have a significant impact on USDD’s price stability. However, TRX’s continued volatility may undermine confidence in USDD’s peg, raising questions about its long-term viability. The report shows that USDD’s claimed collateral may actually be as low as 53%, considering the exchange Huobi’s claims for BTC reserves. Most of the reserves are located in multi-signature wallets, not directly in the USDD smart contract.
Summary, there are changes,
