Tron wants to avoid a terra-like disaster
Tron’s algorithmic stablecoin has now switched to the hybrid model
Tron founder Justin Sun recently told Bloomberg that USDD (USDD) stablecoin would be modified to avoid a Terra-like collapse.
Sun said overcollating the algorithmic stablecoin would boost investor confidence.
The reserve, which will be maintained with a collateral ratio of at least 130%, now includes a total of $1.37 billion in digital assets.
The controversial Tron founder confessed that Terra’s collapse has accelerated the planned upgrade.
The stablecoin’s total supply currently stands at $667 million, according to data from CoinGecko.
Following the epic implosion of the $60 billion Terra ecosystem in early May, Tron emerged as the third largest blockchain within the decentralized financial space (behind only Ethereum and BNB Chain). According to data from DefiLlama, total value locked (TVL) has risen above $6 billion. Tron has now overshadowed Avalanche and Solana.
The revival of the Tron ecosystem has translated into TRON’s price action. The action, which was seemingly a relic of the past a few months ago, has now nearly made it back into the top 10.
TRON is still 64.72% away from regaining its previous record of $0.231673, which was recorded all the way back in 2018.
As reported by U.Today, Sun dismissed allegations of financial crime after The Verge reported that the founder of Tron was allegedly being investigated by US authorities. The scandal-ridden cryptocurrency threatened to sue the media for defamation.
In December, Sun announced that he had left Tron to become a WTO ambassador for Grenada.