Tron TRX/USD launched its USDD USDD/USD algorithmic stablecoin last month and now it is making major changes to its architecture to avoid the fate of Terra LUNA/USD and the algorithmic stablecoin that brought it down TerraUSD UST/USD.
What Happened: Tron is boosting USDD's transparency and increasing its collateral reserves to a minimum of 130%, according to a Sunday Bloomberg report. Tron founder Justin Sun said that "this has been in the plan, but Terra/Luna definitely accelerated and prioritized this for our team." He added:
“We want to have USDD to be overcollateralized, which I think will make market participants more comfortable about using us in the future,” he added.
See Also: How To Earn Free Crypto
USDD, with its supply of about $667 million, claims a collateralization ration of 218% and a guaranteed minimum collateral ratio of 130%. Official data shows that there is over $787 million worth of collateral assets backing the stablecoin's supply of under 670 million coins.
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