Justin Sun creates "the most decentralized Stablecoin"

[33QE]

The founder of Tron, the well-known Justin Sun decided to launch a decentralized Stablecoin called Decentralized USD (USDD). The difference from all existing ones, according to Justin Sun, will be that USDD will be “the most decentralized stablecoin in human history.”
In his message on Twitter, he says https://twitter.com/justinsuntron/status/1517143091722940417 "The USSD will provide custody services for the $10B worth of highly liquid assets raised from blockchain industry initiators and use them as an early-stage reserve. The TRON DAO will set its basic risk-free interest rate to 30% per annum".

Do you think USDD will be more decentralized than existing decentralized stablecoins?

https://i.ibb.co/dQzZcSq/345344.gif

updated

On May 5, a decentralized algorithmic USDD stablecoin was launched on the Tron network, which is also available in Ethereum and BNB Chain. In addition, USSD mining in these networks was also announced.
The Official Guide on USDD Mining: https://medium.com/@usddio/the-official-guide-on-usdd-mining-decentralized-algorithmic-stablecoin-on-tron-cc05081156e9
Guide how to transfer USDD from one network to another: https://medium.com/@usddio/usdd-cross-chain-tutorial-8eb5f58f3089

I think he's trying to get people to short him. The protocol has pretty much the same mechanics as Luna / UST.

The only difference is Justin Sun has a LOT more money than Terra. They're small fish.

Would i short the man who bought this art piece for 78M+?

https://news.artnet.com/app/news-upload/2021/11/FNY21-Macklowe-10788-Alberto-Giacometti-Le-Nez-copy.jpg

[tbct_mt2]

I think he's trying to get people to short him. The protocol has pretty much the same mechanics as Luna / UST.

The only difference is Justin Sun has a LOT more money than Terra. They're small fish.

The problem is not how much money a project has. Matter is if your product concept is wrong that results in a broken financial model for your project. It in turn will be a deadly weakness of your project and at a right time, your project will be compromised to death because of that weakness.

The technical concept for USDD from Justin Sun and TRON is the same as of UST and LUNA from Terra. From the bailout of Terra, I don't believe investors (institutional or retail) will mind to spend their capital into USDD, if it is built on as a similar algorithmic stable coin of $UST.

[tvplus006]

30% per year is quite large, and it is bigger than UST. that's why I started doubting this, since yesterday's UST issue I had a bad view on algorithmic stablecoins. plus Justin Sun's poor track record in the crypto space. made me think twice about trusting USDD. it is possible that what happened to UST will be repeated to USDD.

20% of UST seemed very high, then we saw 30% per annum for USDD, but KuCoin surpassed everyone and announced a promotion of 60% per annum for 7 days for USDD stake holders: https://www.kucoin.com/news/en-usdd-high-profit-staking-enjoy-an-apr-of-60 In this case, the profit received in 7 days will be higher than what you will receive in 1 year in a traditional bank.

[mindrust]

No big deal this is just another scam in the ocean. Everybody can come up with their version of a stable coin in the end. Nobody is stopping them. Soon coinmarketcap will be filled with stable coins rather than legit blockchain projects it is quite funny actually I am sure USDD will be backed real assets too. Is there a reason why would Justin lie to us? I am sure he would do his audits and show us USDD's books so there won't any suspicion about the assets backing USDD.

[tvplus006]

Justin sun rumour was spread all over the market. Many rumours was spread all over the market,the important one among are the stable coin concept. Don’t trust until you get an official twitter from the Justin sun, many people scamming the crypto beginners with the fake coin. ..

Thus, 2 weeks have passed, and you still do not believe that a new decentralized algorithmic stablecoin USDD was launched on the Tron network? You just need to go to Justin Sun's Twitter page: https://twitter.com/justinsuntron to make sure of it. Almost all of his posts are now about USDD.

[zasad@]

30% per year is quite large, and it is bigger than UST. that's why I started doubting this, since yesterday's UST issue I had a bad view on algorithmic stablecoins. plus Justin Sun's poor track record in the crypto space. made me think twice about trusting USDD. it is possible that what happened to UST will be repeated to USDD.

20% of UST seemed very high, then we saw 30% per annum for USDD, but KuCoin surpassed everyone and announced a promotion of 60% per annum for 7 days for USDD stake holders: https://www.kucoin.com/news/en-usdd-high-profit-staking-enjoy-an-apr-of-60 In this case, the profit received in 7 days will be higher than what you will receive in 1 year in a traditional bank.

Do you know where the profit comes from?
UST is printed when the Terra coin is burned. Therefore, in order to get more UST tokens, you need to burn more Terra coins.
You can buy UST, but then someone else will buy Terra and burn it. Now the most interesting thing: look at how many times the price of the terra coin has increased and what is the annual yield on staking the UST token. It was possible to make a 100% profit, but then it would look like a scam.

[tvplus006]

Do you know where the profit comes from?
UST is printed when the Terra coin is burned. Therefore, in order to get more UST tokens, you need to burn more Terra coins.
You can buy UST, but then someone else will buy Terra and burn it. Now the most interesting thing: look at how many times the price of the terra coin has increased and what is the annual yield on staking the UST token. It was possible to make a 100% profit, but then it would look like a scam.

Then you should remember the opposite, that when selling UST, we automatically turned on the printing of the Luna coin. As we remember, a similar UST dump led to the issue of 7 trillion Luna coins in one night. Will the USDD collateral be sufficient to prevent a similar situation with TRX from happening again?

[Anonylz]

Keeping Justin's personality aside, having a stablecoin from the tron blockchain will be great imo, I know many mostly use the trc20 of usdt more than the erc20 because of how cheap it is to withdraw, so having it's own stablecoin will be even better. I know many investors will be reluctant because of the recent terra ust incident, I think Justin has already learned from the ust failure and will do his absolute best to keep this stablecoin more secure. Am looking forward to having usdd in all major exchange.

[RealMalatesta]

30% per year is quite large, and it is bigger than UST. that's why I started doubting this, since yesterday's UST issue I had a bad view on algorithmic stablecoins. plus Justin Sun's poor track record in the crypto space. made me think twice about trusting USDD. it is possible that what happened to UST will be repeated to USDD.

20% of UST seemed very high, then we saw 30% per annum for USDD, but KuCoin surpassed everyone and announced a promotion of 60% per annum for 7 days for USDD stake holders: https://www.kucoin.com/news/en-usdd-high-profit-staking-enjoy-an-apr-of-60 In this case, the profit received in 7 days will be higher than what you will receive in 1 year in a traditional bank.

That is not possible, I mean not sustainable and it will never happen. Sure they could do something about the current situation if they really work hard and find people who are willing to pay premium for loans and not have high default rate and all that then it would make sense. But at the same time, there is a good case to be made about the 20% point because it is not really that bad at all, it doesn't sound to unsustainable.

In the crypto world, you could gain 20% per annum and that is not too much and could be sustainable. Pluskucoin is at a level where they have a ton of money and could do something that would be very profitable at the end.

[tvplus006]

Already after Luna and UST depreciated, a similar thing also with the algorithmic stablecoin DEI on the Fantom network, the value of which decreased against the dollar by 45%. Obviously, this type of stablecoin has a vulnerability that is exploited by scammers with large capital, and we can assume that the same fate awaits USDD and TRX, respectively.

Less than 2 months have passed since the launch of the decentralized algorithmic USDD stablecoin, and it has already lost its binding to USD. For those who closely follow this topic, this fact is not surprising, but provided an opportunity to get a profit from the TRX short.

[popeye95]

Already after Luna and UST depreciated, a similar thing also with the algorithmic stablecoin DEI on the Fantom network, the value of which decreased against the dollar by 45%. Obviously, this type of stablecoin has a vulnerability that is exploited by scammers with large capital, and we can assume that the same fate awaits USDD and TRX, respectively.

Less than 2 months have passed since the launch of the decentralized algorithmic USDD stablecoin, and it has already lost its binding to USD. For those who closely follow this topic, this fact is not surprising, but provided an opportunity to get a profit from the TRX short.

Wouldn't count on it. If you know about the Luna case then I think you know it was clearly an inside job, done by Do Kwon to scam people's money and pull an exit. TRX can also stop the peg rate if they feel they were under of same Luna-style attack which took Do Kwon long enough to pull the plug.

[Lanatsa]

Already after Luna and UST depreciated, a similar thing also with the algorithmic stablecoin DEI on the Fantom network, the value of which decreased against the dollar by 45%. Obviously, this type of stablecoin has a vulnerability that is exploited by scammers with large capital, and we can assume that the same fate awaits USDD and TRX, respectively.

Less than 2 months have passed since the launch of the decentralized algorithmic USDD stablecoin, and it has already lost its binding to USD. For those who closely follow this topic, this fact is not surprising, but provided an opportunity to get a profit from the TRX short.

Wouldn't count on it. If you know about the Luna case then I think you know it was clearly an inside job, done by Do Kwon to scam people's money and pull an exit. TRX can also stop the peg rate if they feel they were under of same Luna-style attack which took Do Kwon long enough to pull the plug.

If you could play with fire then you could short with Trx but to remind off that Justin sun had retired of being CEO of Tron which does simply imply that there might be still connections in terms of fundamentals or not. Tying up Luna on this one?
Decentralized stable coin? Don't know if this one will really be successful considering on some aspects and factors then let's see if this one would push through.

[tvplus006]

Less than 2 months have passed since the launch of the decentralized algorithmic USDD stablecoin, and it has already lost its binding to USD. For those who closely follow this topic, this fact is not surprising, but provided an opportunity to get a profit from the TRX short.

Wouldn't count on it. If you know about the Luna case then I think you know it was clearly an inside job, done by Do Kwon to scam people's money and pull an exit. TRX can also stop the peg rate if they feel they were under of same Luna-style attack which took Do Kwon long enough to pull the plug.

Still, I continue to insist that the problem of these stablecoins lies precisely in the fact that they are all algorithmic, the cost of which is provided by the main coin of the corresponding blockchain. Look carefully at these stablecoins: DIE, USDN and USDD, they are not related to DoKwon in any way, but they have in common that they are algorithmic stablecoins and that they have lost their binding to USD.

[eaLiTy]

Do you think USDD will be more decentralized than existing decentralized stablecoins?

Does anyone really care about the stable coins being decentralized or you want transparency about the peg but the serious issue here is that after the launch it is struggling to maintain the 1:1 peg ratio and it is still below a dollar valuation even though more liquidity is add to its reserves. Will see how decentralized it can be and how long it will be able to maintain the valuation, after the UST debacle every stable currency will be under scrutiny.