‘Stabilizing’ Stablecoins: How USDD & Djed Are Going About It
The “stable” narrative in Stablecoins shifted in May as Terra saw a de-peg. The crypto space, clasped in bear teeth, recovers from unhealed wounds following market turmoil. Nevertheless, the massive plummet translated to severe declines, with the hawkish Fed’s stance adding fuel to the fire.
Such developments had many traders losing confidence and interest in the cryptocurrency space. Though the current weak sentiments, Cardano and Tron considered adding a new stablecoin. Such moves raised eyebrows within the community.
We’re Different from Terra!
Cardano developers revealed the Djed mainnet launch. Djed is a Cardano-based algorithmic and decentralized stablecoin. Meanwhile, the stablecoin has Shen as its reserve coin to assure price stability amidst volatile market conditions.
It utilizes smart contracts to guarantee price stabilization and will have more usage for DeFi operations. The launch post revealed Djed as an ultimate token that individuals would use to pay transaction charges within the Cardano network.
Meanwhile, the testnet displayed some crucial problems, including invalid collateral type and unavailable requests. COTI revealed that recognizing such issues is usual and promised users resolutions before the token’s mainnet release in June (data from Cardano Feed).
Djed’s impending mainnet launch is among Cardano’s awaited developments. The Vasil fork will arrive towards June end. Moreover, the community has higher expectations as far as the upgrade is concerned.
TRON’s Developments
TRON is a blockchain platform planning to introduce its USDD’s mainnet launch. Nevertheless, the road appears complicated for the blockchain because of its similarities with TerraUSD. Outrage remained since the UST debacle due to how the LFG controlled the condition. Therefore, USDD has seen vocal opposition from the community.
Meanwhile, TRON identified the collateral ratio as guaranteed in a press release. It even boasts more collateral ratio, of 130%, than DAI’s 120%. USDD has its concurrent collateral ratio revealed on TRON DAO’s website, available to the public 24/7.
TRON invested massive cash in risk tokens like BTC and other cryptocurrencies to back USDD amid volatility, like Terra. The similarities have incensed the cryptocurrency atmosphere as Terra boasted a colossal BTC reserve.
Nevertheless, TRON’s Justin Sun trusts diversification might help secure USDD. He added that they would use BTC and other assets, including all stablecoins, to safeguard the USDD. Sun confirmed that USDD would be part of the reserve.
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