Justin Sun: No fear of decoupling, wave energy storage will give USDD the most solid guarantee

On May 5th, the well-known public chain TRON officially launched the decentralized stable currency USDD. The latest issuance has exceeded 270 million, and the corresponding destroyed TRX exceeds 3.3 billion.

So can the decentralized stable currency USDD successfully deal with decoupling events? Golden Finance recently interviewed Mr. Justin Sun, founder of TRON.

Golden Finance: On April 21, you sent an open letter stating that the TRON decentralized stable currency USDD will be launched on May 5. At present, it can be seen that USDD has been launched and circulated. Please introduce the development of centralized stablecoins such as USDT on TRON?

Justin Sun: TRON has actually been the absolute leader in the stablecoin field in the industry. After USDD goes live, this position will be further strengthened. At present, USDD has been launched and circulated in TRON, Ethereum, BNBChain, and has landed on mainstream platforms such as SUNSwap, Uniswap, Curve, PancakeSwap, and Ellipsis Finance. The latest circulation exceeded 270 million pieces, and the corresponding destroyed TRX exceeded 3.3 billion pieces.

The TRON version of USDT is the mainstream stable currency preferred by more blockchain users today. With the advantages of transparency and security, near-zero transfer fees, and account arrivals in seconds, the TRON version of USDT is very popular on exchanges, enterprise users and individual users, and it also provides investors with a very convenient blockchain. Entrance.

According to the data, with the continuous issuance of Tether on the TRON network, the issuance of the TRON version of USDT exceeded 40 billion for the first time in March this year, and has now reached 42.7 billion. In terms of the number of accounts held, the TRON version of USDT has completed a historical leap from 1 million to 10 million in the past year, and the monthly user growth has reached one million. More importantly, since its launch in 2019, the total amount of TRON USDT liquidation has exceeded 4 trillion US dollars, and the encrypted payment based on stablecoin transfer has begun to rise globally.

It can be said that the demand for the TRON version of USDT has been soaring in the past few years. This is not only due to the phenomenal development of the blockchain industry in the past few years, but also the huge user base and strong industry influence of TRON as a high-performance public chain in the industry. It is believed that with the upgrade of TRON DeFi and the continuous strengthening of the ecological construction on the chain, the application scenarios of the TRON version of USDT will be further expanded in the future, providing high-quality, inclusive and efficient financial services to more users around the world.

Golden Finance: Under the circumstance that the circulation of TRC20-USDT has dominated the stable currency, what is the consideration for issuing USDD?

Justin Sun: As you said, after the circulation of TRC20-USDT surpassed the Ethereum version of USDT for the first time in April 2021, its dominance in the stablecoin field has gradually stabilized in the past two years. But the blockchain world always pursues decentralization of all centralized things, including stablecoins. In the long run, decentralization must be its final attribution, and it is also the most in line with the needs of users and the interests of the industry. To put it more bluntly, the current massive circulation of centralized products in the blockchain world is contrary to the spirit of the industry. The status quo of the stablecoin ecology heavily relying on centralized systems needs to be changed.

From the perspective of the development process of the industry, decentralized stablecoins also have the conditions to expand and spread, which can be seen from the expansion of decentralized stablecoins and the changes in user perception. Therefore, as a public chain with the most powerful transfer and clearing system in the industry, and a leading public chain in the stablecoin field regardless of user scale or development experience, TRON should stand up and take up the decentralization of stablecoins when the conditions are ripe. big flag.

As I said in the open letter, after realizing the success of TRON’s USDT2.0 era, TRON DAO revolutionized itself and made every effort to build TRON USDD, hoping to push the development of global human stablecoins to a new level . Because of the success of centralized stablecoins, they are still managed and reserved by centralized institutions, which will not only be more easily affected by the supervision of various countries, but also the legal currency stored offline cannot be queried and constrained through on-chain contracts. While USDD and TRC20-USDT are also built on the high-performance public chain TRON, they naturally have stablecoin genes of high speed, low fees, and high scale, but they are completely decentralized. Relying on mathematics and algorithms, they are similar to the development of stablecoins. in a non-destructive internal upgrade.

In short, only purer decentralization can truly bring the global influence of blockchain to a new level, which is a topic that has a particularly far-reaching impact on the industry. TRON’s issuance of USDD is like a Chinese saying, the merit is in the present, and the benefit is in the future.

Golden Finance: What is the operating mechanism of USDD? How to ensure the stability of USDD? Will decoupling happen?

Justin Sun: USDD is a decentralized algorithmic stablecoin initiated by TRON’s joint reserve and blockchain mainstream institutions. It runs on the TRON network and is connected to Ethereum and Binance Chain through the BTTC cross-chain protocol. As a stable currency, USDD first needs to meet the needs of users for stable digital currency. Therefore, USDD uses the world’s most widely used US dollar (USD) as an anchor to ensure that users can use a stable, decentralized, and tamper-proof USDD dollar system.

At the same time, the USDD protocol obtains the real price of USD through the oracle machine. The oracle service is provided by the super representatives of the TRON network. They vote in each voting stage. A vote will be counted every N blocks, and the weighted median of the votes of each super representative will be taken as the real price. The USDD protocol will use the price obtained by the weighted median of the voting results as the benchmark, reward the super representatives whose voting results are within the deviation value, and punish the super representatives whose voting price is outside the deviation value range. As a high-performance public chain in the industry, the TRON network has never experienced a security incident over the years. It is obviously able to provide USDD with the most convenient and reliable oracle service, which is a prerequisite for USDD price stability.

In addition, USDD is pegged to the US dollar and keeps its price stable with the help of TRX. Simply put, it is to absorb the price volatility of USDD through the super representative of TRON, making TRX the most direct defense against USDD price fluctuations. In the short term, if the USDD price is lower than the target price, the super representative will mint TRX by destroying the USDD, prompting the USDD to return to the target price. When the price of USDD is lower than 1USD, arbitrageurs and users can use 1 USDD to exchange TRX worth 1USD in the USDD agreement; when the price of USDD is higher than 1USD, arbitrageurs and users can exchange 1USD worth of TRX for 1USDD in the USDD agreement .

As for the issue of decoupling, in addition to USDD’s perfect arbitrage mechanism, TRON DAO Reserve can provide the most solid guarantee. Logically speaking, there is the wave of the Federal Reserve first, and then there is the USDD. Extreme market conditions have always been the “natural enemy” of decentralized algorithm stablecoins, and so-called decoupling often accompanies them. As an important innovation in the industry, the main purpose of its establishment is to protect the blockchain industry and market, alleviate extreme and long-term downturns, and solve the panic problem caused by the financial crisis. At the beginning of its establishment, the Federal Reserve Bank will preserve and host the $10 billion of high-liquidity assets raised by blockchain industry promoters as an early reserve.

At present, Alameda Research, Amber Group, Poloniex Exchange, Ankr, and Mirana have all become members of the Federal Reserve Bank of Poland and whitelisted institutions. As the wave of the Fed’s lineup continues to grow, the process of USDD defending human financial freedom will also accelerate.

Golden Finance: Many public chains have begun to issue algorithmic stablecoins. For example, Near recently issued USDN, and TRON also issued USDD. Is this a trend? What makes USDD unique compared to them?

Justin Sun: In fact, algorithmic stablecoins are not very new and have been developing with controversy in the past two years. However, judging from the current development momentum of decentralized stablecoins, changes in user perceptions, industry fundamentals, and the inherent development needs of blockchain to become more decentralized, algorithmic stablecoins are indeed becoming a trend. The growth rate of the market value of stablecoins has been much higher than that of the entire crypto market in the past year, and the status of algorithmic stablecoins in this track has grown by leaps and bounds.

In addition, starting from the major public chains, they do hope to use the algorithmic stable currency to promote the development of their own ecology. Stablecoins are one of the most important traffic portals in the industry, and are of great significance to the on-chain transaction volume, user activity, and DeFi ecology. But looking back at the development history of stablecoins, it can be found that whether the public chain is strong enough in fact is often the strongest support for stablecoins. This is why, at present, the top public chains such as TRON and Ethereum are the best developed stablecoins. The competition for decentralized stablecoins will, to a large extent, be the same.

For USDD, its uniqueness is that it is backed by the TRON public chain. TRON became fully decentralized last December and is now a decentralized autonomous organization (DAO) governed by the community. More importantly, TRON’s user scale and accumulation in the stablecoin field are second to none in the industry. Up to now, the total number of TRON public chain users has exceeded 92 million, the number of transactions has exceeded 3.1 billion, the accumulated settlement and settlement has reached 4 trillion US dollars, and it has a complete DeFi layout with SUN and JST as the ecological basis, which will give USDD the most direct support.

In addition, USDD also has a strong endorsement by the Federal Reserve Bank, which is also unique. As the first decentralized central bank in the industry, in addition to alleviating extreme market conditions, TRON also has the ability to regulate the risk-free interest rate of stablecoins in TRON and other blockchain networks, protect the stability of the exchange rate of decentralized stablecoins, and keep financial reserve assets. and other functions.

As far as USDD itself is concerned, it will also continue the high-speed, low-fee, and high-scale model standards of TRON USDT in the stablecoin 2.0 era. USDD has the characteristics of completely zero-threshold holding; low volatility, realizing the purpose of wealth preservation and appreciation; realizing the inviolability of private property in a complete sense. At the same time, the BTTC cross-chain protocol will make USDD naturally have the differentiated advantage of multi-chain deployment. All of these will help USDD emerge in the field of decentralized algorithm stablecoins and open the era of stablecoins 3.0.

Golden Finance: The key to the success of an algorithmic stablecoin is to have an ecosystem or many projects to adopt it. Currently, which projects use USDD? Which chains will USDD be listed on?

Justin Sun: Indeed, in order to achieve rapid growth of algorithmic stablecoins in the initial stage of issuance, not only does it need a strong ecological support behind it, but it also needs to efficiently promote the expansion and cooperation with the project side. From this perspective, USDD has made a lot of pragmatic progress after its issuance, which has rapidly expanded the application scenarios of USDD. Currently, SunSwap, SUN, PancakeSwap, Ellipsis Finance, Uniswap, Curve, and KyberSwap have become USDD DeFi trading platforms.

Specifically, after the official release of USDD on May 5, it has entered Ethereum and BNBChain for circulation through the BTTC cross-chain protocol for the first time. The current circulation on both Ethereum and BNBChain exceeds 40 million.

SUN.io on TRON has launched a new 3pool liquidity pool, including USDD, and the current APY is as high as 57%; SunSwap has opened a number of USDD liquidity trading pairs, including USDD-TRX, USDD-USDT, USDC-USDD , TUSD-USDD, etc., high-yield mining is in full swing; JustLend has also officially launched USDD deposit mining. After the launch, the deposit mining APY is as high as 70%. At the same time, JustLend’s USDD market mortgage factor has increased to 85%. The same amount of USDD will be able to lend more assets, which will greatly increase the utilization rate of USDD funds.

In addition, Ellipsis Finance (EPS) on BNBChain has opened the USDD/3EPS mining pool, and the current APR income is considerable; Curve on Ethereum has also officially launched the USDD/3CRV LP mining pool, and the current APR is as high as 30.87%-77.175%. And the new BitTorrent Chain mining pool on KyberSwap also joined USDD. The mining pool currently has more than ten liquidity trading pairs to choose from, and liquidity mining will last for 4 months with a total reward of $1.5 million.

According to the plan, USDD is divided into two types of mining platforms. One is the designated mining platform, namely SunSwap, SUN.io, and JustLend. The centralized platform is Poloniex. rigid interest rate. The second type of platform is a cooperative mining platform. The interest rate return of the cooperative mining platform is jointly supported by the TRON DAO Reserve. The interest rate will fluctuate around 30%. The Federal Reserve Bank will do its best to ensure the interest rate return of the cooperative mining platform.

Let me tell you in advance that in the future, USDD will also launch more top-tier exchanges and wallets in the world, so stay tuned!

Golden Finance: According to the open letter, USDD will have 4 versions of space, Tiangong, moon, and Mars. Can you explain why it is designed this way? What does each version accomplish?

Justin Sun: The development of TRON USDD will be divided into four versions: space, Tiangong, moon, and Mars. In fact, it symbolizes the four goals of human and TRON’s future participation in space exploration. Because space and blockchain are both important journeys in the future of mankind, and also the inevitable trend of human history development, the courage, adventurous spirit and pioneering spirit contained in them are essentially the same. As a new force in the blockchain industry, the decentralized stablecoin should have such attributes and the ambition of continuous development.

In the 1.0 space stage, USDD will be issued and fully circulated, and the central bank of TRON DAO and its shareholder whitelist institutions will become the first miners of USDD. In the 2.0 Tiangong stage, the USDD decentralized network test network will be launched, and the TRON test network super representative will run the oracle node to test the stability of the price feeding system. In the 3.0 lunar stage, the USDD decentralized network will be officially released to realize the fully decentralized minting, exchange, and destruction of USDD, and the minting rights and destruction rights will all be handed over to the TRON network. In the Mars 4.0 stage, the mainnet of the USDD decentralized network will be officially launched, and the central bank of TRON DAO will transfer all USDD issuance and destruction authority to the TRON USDD mainnet.

After going through the above stages, the TRON ecology will finally complete the support for the USDD protocol from the community ecology, wallet, browser, exchange, mining and other links. I believe that the stablecoin 3.0 era dominated by TRON’s USDD will inject more energy into the development of blockchain, and TRON DAO will also provide many investors with a more decentralized future.

Golden Finance: What plans does TRON DAO have in the future to promote the further adoption of USDD?

Justin Sun: TRON DAO will spare no effort to promote the widespread use of USDD. As I said in my open letter, now we have ushered in the possibility of decentralization of the most centralized part (stablecoin) in the blockchain world. We have no hesitation in leading the industry to the era of stablecoin 3.0 and accelerating the realization of human financial freedom.

At present, the issuance of USDD has exceeded 270 million pieces, and the corresponding TRX destruction amount has exceeded 3.3 billion pieces, and the growth rate is amazing! Based on this, TRON Joint Reserve has authorized 1 billion USDD, and the specific issuance and circulation will be determined by market demand. At the same time, the Federal Reserve Bank of Poland will continue to expand its members and whitelist institutions, continue to expand reserves, lay a solid foundation, and ensure the stability and decentralization of the USDD exchange rate. Here, more high-quality institutions are also welcome to join the FRB.

Under extreme market conditions, the Federal Reserve Bank of Waves has recently increased its reserves several times. First, on May 7, it bought 504,600,250 TRX at an average price of $38,993,043 and an average price of $0.07727, and then bought TRX, BTC and USDT many times. The most recent one was 1249.57 BTC on May 13 at an average price of $29,394 for $36,730,197. This not only guarantees the security of the entire blockchain industry and the crypto market, but also keeps TRX and USDD stable in this market volatility. I believe that the combination of USDD and TRON joint reserves will be a powerful weapon to defend personal financial sovereignty.

In addition, the TRON network will take advantage of the scale of 100 million users and active on-chain transfers to divert USDD, and TRON’s increasingly stable DeFi ecosystem will also be fully incorporated into USDD. Through the BTTC cross-chain protocol, USDD will enter more mainstream public chains in the future, bringing convenience to users on different blockchains and improving the efficiency of capital utilization. Recently, the second season of the 2022 TRON Hackathon is about to start. The promotion of the event will strengthen the cross-chain ecology of BTTC, enhance the activity and innovation of the TRON network, and realize that assets on TRON, including USDD, can be distributed in more regions. Blockchain thrives.

It is believed that under the background that the Federal Reserve Bank strictly implements the USDD 30% basic risk-free interest rate, and the USDD designated and cooperative mining platforms are launched one after another, USDD will quickly accumulate the first batch of fans, and its issuance and user adoption will also steadily increase.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/justin-sun-no-fear-of-decoupling-wave-energy-storage-will-give-usdd-the-most-solid-guarantee/
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