Coingape - 5/13/2022 3:44:11 PM - GMT (+0 )
In the midst of an unprecedented meltdown of the Terra blockchain and the market’s subsequent testing of stablecoin prices, another algorithmic stablecoin is making significant strides. In a latest move, Tron’s USDD stablecoin has been officially listed on the Huobi exchange on Friday. The move could significantly help the stablecoin expand its base further.TRON USDD Spot Trading Soon
Deposits have already opened, while the USDD spot trading will open when the deposit volume meets the demand of market trading, Houbi announced. As of writing, the USDD stablecoin is trading at $0.9994, according to CoinMarketCap.
The TRON DAO Reserve introduced USDD on the blockchain on May 5. This was only few days before Terra’s UST started to show signs of price decline after initially depegging from the $1 threshold. Starting with the depeg on Monday, the UST stablecoin price had since lost 99% of its value.
Rivalling Terra’s UST Stablecoin
On Thursday, the Terra blockchain had been subject to a brief halt following severe LUNA inflation and a significantly reduced cost of attack.
By design, USDD is many ways similar to $UST. It is supposed to maintain a price equilibrium with the U.S. Dollar, while trading between Tron’s TRX and USDD. Tron had on Tuesday bought 500 bitcoin and placed in the blockchain’s reserve for USDD. This was a part of its plans to back the stablecoin with a $10 billion reserve.
The TRON DAO Reserve issued the USDD cryptocurrency with a stable price and diverse use cases. It is designed with a built-in incentive mechanism and a responsive monetary policy which will allow USDD to self-stabilize against any price fluctuations. It also consolidates the value of USDD as a true settlement currency.
Meanwhile, Terra’s decline over the last few days meant troubled waters for the rest of the cryptocurrency ecosystem. With Bitcoin price hovering around the $30,000 mark, the top cryptocurrency saw an over 50% drop from its all time high of $68,990.