Amid an unprecedented collapse of the Terra blockchain and the market’s subsequent testing of stablecoin prices, another algorithmic stablecoin is making significant strides. As a final move, Tron’s USDD stablecoin was officially listed on the Huobi exchange on Friday. The move could significantly help the stablecoin further expand its base.
Coming Soon TRON USDD Spot Trading
Deposits have already been opened, while USDD spot trading will open when deposit volume meets market trading demand, Houbi announced. At the time 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 just days before Terra’s UST began to show signs of price decline after initially deviating from the $1 threshold. Beginning with the depeg on Monday, the UST stablecoin price had since lost 99% of its value.
On Thursday, the Terra blockchain was subject to a short stop after severe LUNA inflation and significantly lower attack costs.
Rival Terra’s UST Stablecoin
By design, USDD is similar to $UST in many ways. It is believed to maintain a price equilibrium with the US dollar while trading between Tron’s TRX and USDD. Tron had bought 500 bitcoin on Tuesday and placed it in the blockchain’s reserve for USDD. This was part of his plans to back the stablecoin with a $10 billion reserve.
The TRON DAO Reserve has issued the USDD cryptocurrency with a stable price and various usage scenarios. It is designed with a built-in incentive mechanism and responsive monetary policy that allows USDD to stabilize itself against any price fluctuations. It also consolidates the value of USDD as a true settlement currency.
Meanwhile, Terra’s decline in recent days has spelled murky water for the rest of the cryptocurrency ecosystem. With the Bitcoin price hovering around $30,000, the top cryptocurrency saw a more than 50% drop from its all-time high of $68,990.
Anvesh likes to write about important crypto adoption announcements by institutions and popular personalities. Being associated with the cryptocurrency industry since 2016, his interest in this space helped redirect his journalism career to the blockchain ecosystem. Follow him on Twitter at @AnveshReddyEth and contact him at anvesh (at) coingape.com
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
This post This LUNA $UST Stablecoin Rival Makes Positive Progress Amid Crash
was published first on https://coingape.com/ust-stablecoin-rival-makes-positive-strides-amid-crash/