Tron’s founder, Justin Sun, has announced that in Q4 of 2024, the network’s top priority will be upgrading USDD stablecoin.
The announcement, shared on X Sun, highlights Tron’s determination to make USDD the market’s top decentralized stablecoin by market capitalization and trading volume.
Sun highlighted that Tron’s current market cap has exceeded $16 billion, with over $200 million in liquidity depth.
He emphasized that these factors create an ideal timing for USDD’s relaunch. Tron anticipates its valuation could rise to $30 billion.
According to Sun, this would allow the network to comfortably support a stablecoin with a market cap of $3 billion while generating reliable on-chain returns for TRX holders.
Tron’s plan to upgrade USDD aims to solidify its position as a prominent decentralized stablecoin.
Sun highlighted that the USDD relaunch will prioritize transparency, offering full visibility for reward accounts and detailed issuance parameters.
He also noted that TRX has been stable, with no 5% daily pullbacks for over a year, proving its reliability as USDD collateral.
Sun forecasts that using TRX as collateral will generate an annualized yield of over 10%.
Additionally, Tron’s $2 billion annual on-chain revenue and token burn mechanism will bolster UDD’s growth and stability.
This financial foundation is expected to meet market demand for a decentralized stablecoin with a market cap between $2 and $3 billion.
Sun acknowledged the concerns surrounding decentralized stablecoins, particularly the issue of collateral security during market downturns.
He reassured the community that technical safeguards have been implemented to prevent cascading liquidations, though he refrained from detailing these measures at this stage.
Specific release parameters for the upgraded USDD will be provided to ensure transparency and confidence in the system.
Sun also revealed plans to incorporate Bitcoin as additional collateral for USDD. USDT is the primary PSM (Peg Stability Module) direct exchange channel for the stablecoin.
These developments aim to bolster USDD’s role in the DeFi space, supported by Tron’s liquidity and market growth.
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