On May 5, Tron developers will launch the USDD algorithmic stablecoin backed by the native TRX token and $10 billion in highly liquid equivalent assets. About declaration Justin Sun, CEO of the Tron Foundation.

USDD repeats the UST stablecoin model tested by Terra Labs, according to the algorithm of its work. The nature of the reserves is not disclosed.

“When the price of USDD drops below $1, users and arbitrageurs will be able to send 1 USDD to the system and receive the equivalent of $1 in TRX. When the price of USDD exceeds $1, it would be appropriate to exchange $1 in TRX for 1 USDD. Regardless of market volatility, the protocol will maintain the stability of the decentralized 1:1 USDD stabilizer down to $1 through algorithms.San explained.

In addition to Tron, the asset will be available on Ethereum and BNB Chain via the BitTorrent Chain cross-chain bridge.

Stablecoin will be managed by Tron DAO. According to Sun, the organization will generate an annual USDD return of 30%.

It needs to collaborate with decentralized and centralized entities to add a stablecoin to its products while maintaining a consistent interest rate policy.

Sun emphasized that USDD will protect private property rights by eliminating the possibility of freezing and confiscation.

The development of USDD consists of four phases: 1.0 Space, 2.0 ISS, 3.0 Moon and 4.0 Mars. Details are not given.

Terraform Labs founder Do Kwon spoke out in support of USDD.

“Decentralized economies deserve decentralized money – every blockchain will run on decentralized stablecoins.” he guessed.

Recall that in March 2021, Do Kwon accepted the $11 million challenge from users who questioned the stability of the LUNA price, which ensures the stability of the UST.

In April, Terra’s UST outperformed Binance USD in terms of market cap.

Earlier, there was speculation on the Near network that the USN algorithmic stablecoin would be launched soon.