The Big News for the last month in the stable coin crypto Space has been the successful launch of Tron's new algorithmic stable coin: USDD.
It's only been around for about a month and people are steadily buying into it...
The minting/ stability mechanism for USDD is similar to Terra-UST, but with TRX as the pegging mechanism rather than TERRA.... You can basically burn TRX to mint USDD.
In fact the mechanism is so similar, it's raised concerns over whether this is just a straight up clone of the Terra ecosystem and thus whether this new algo-coin is sustainable.
At first sight it doesn't appear so as it's offering up to 30% APR compared to UST's 20%, and it's difficult to see how 30% can be sustained when 20% couldn't....?
Justin Sun recently announced plans to prevent a death spiral occurring, mainly through over- collateralization, and if you look on their website you'll see claims that this currently sits at over 200%...
However, this claim has been called into question by a twitter user going by the handle of @resdegen.
He points out that that if you look at the amount of funds locked in the Tron DEFI ecosystem then the actual collateral ration is only 125%.
The only way they get to the > 200% figure is by including the TRX IN The burning contract which can be used to mint USDD, which technically isn't collateral because that can go to near 0 in a death spiral event given it's pegging-function, wiping out its value.
Of course if you remember Justin Sun's lies surrounding the hostile Steem takeover then the lies here should be no surprise.
Don't Buy USDD!
But what should worry you is this: JS is now risking, effectively, all his TRX on this stable coin, knowing the RISKS.
It wouldn't surprise me if every single cent he makes out of this is cashed out of the TRON ecosystem altogether - in other words it wouldn't surprise me AT ALL if he's setting this whole thing up to drain a few more hundreds of millions out of suckers before the whole thing implodes.
And then he'll just chill in Grenada for the rest of his days where he's got diplomatic immunity from any come back on all of this because he's a diplomat now.
Don't be suckered into USDD, Justin Sun is just out to make a quick buck here for sure.
I just hope the whole thing collapsed before it grows too much and Justin Sun just fucks off for good.
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Scammers do what they know to do 😂
Ponzi scammer guy does the next thing :D
Zero next :D
0 sooner rather than later I hope!
depending on market maybe a blow-up first that kills tron too :D
No surprised there. Justin Sun is the epitome of misleading.
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You just want to scream at people 'avoid this shit'!
I get the feeling that you are saying that I shouldn't completely trust Justin Sun....
Now why would you think that?!?
Anyone in TRON or any TRON related DeFi platform are risking everything on this man.
Yet the numbers that are behind the ecosystem are just mind boggling.
I can see this being his dodgy off ramp.
Like you said, he's already got his diplomatic immunity in Grenada sorted where he can live out the rest of his days in paradise.
My question is what would happen to our old friends at Steem...
Damn I want that Steemit domain back and pointing to Hive!
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I think the best we can hope for is that the whole project collapses as soon as possible and just crashes at a couple of billion rather than 50 or more.
I don't think people are stupid enough for it to get above a few bill.
Would the Steemit domain pointing here make that much difference?
I mean surely all we have to do is wait a few years and the SEO will be fine?!?
Of course if you remember Justin Sun's lies surrounding the hostile Steem takeover then the lies here should be no surprise.— trust plays a vital and key role in the crypto world . After the terra - Luna fiasco it’s quite doubtful if many individuals would want to be interested and invested in this new stable coin , USDD . Only time will tell how things eventually unfold.
I'm hoping people's memories aren't that short!
Lmao! It is the hope for me .
But you know the sad thing, people are actually putting money in this stuff. It’s so sad because we are basically risking another UST crash and it will again affect the entire crypto. Things like this are just virus to crypto and should be treated like a virus
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Yes cut it out!
Hopefully it's JS feeding in his own money mainly. Quite possible.
Wow .. that is very bad crypto actor who gain his personal profit in the name decentralization. Is it true or not that JS has left steem because steem not profitable anymore?
very uncharacteristic of Sun to be misleading, he is usually so honest and transparent:) haha !!!
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