The Tron team aims to support the “overcollateralization” of the USDD algorithmic stablecoin to prevent a TerraUSD-like crash. Justin Sun, the founder of the project, told Bloomberg.

According to the site, there are 667.5 million USDD in circulation at the time of writing, backed by more than 225% of the value of Bitcoin, USDT and TRX reserves.

“It was in the plan, but Terra/LUNA has definitely stepped up and prioritized our team. We want USDD to be over-collateralized, which will make it more comfortable for market participants to use it,” he said.

In a press release, the developers said they will keep the reserves at at least 130%. In addition to those listed on the site, highly liquid collateral assets will include several other stablecoins such as USDC, TUSD, and USDJ.

According to Sun, one of the main lessons for him from Terra’s collapse was the Luna Foundation Guard’s passive policy of buying and selling bitcoin. He noted that it was easily predictable, which facilitated the attack.

“Tron DAO will be very active and less predictable. You are relaxing the market but not disclosing too much information,” he said.

He previously said that the USDD collateral volume in the first phase will be $2 billion and will reach $10 billion in the future.

Recall that the Tron team announced a stablecoin launch in April. On May 5, the coin entered circulation.