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 in order to avoid a Terra-like collapse.
Sun said that overcollaterizing the algorithmic stablecoin would boost investor confidence.
Its reserve, which will be maintained with a collateral ratio of at least 130%, now includes a total of $1.37 billion worth of digital assets.
The controversial Tron founder confessed that the Terra collapse has sped up the planned upgrade.
The total supply of the stablecoin currently stands at $667 million, according to data provided by CoinGecko.
After the epic implosion of the $60 billion Terra ecosystem in early May, Tron emerged as the third-largest blockchain within the decentralized finance space (behind only Ethereum and BNB Chain). According to data provided by DefiLlama, its total value locked (TVL) has spiked 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 seemingly was a relic of the past just a few months ago, is now close to entering the top 10 once again.
TRON is still 64.72% away from reclaiming its previous record high of $0.231673 which was recorded all the way back in 2018.
As reported by U.Today, Sun dismissed financial crime allegations after The Verge reported that the Tron founder was allegedly being investigated by U.S. authorities. The scandal-ridden cryptocurrency threatened to sue the media outlet for defamation.
In December, Sun announced that he had quit Tron in order to become a WTO ambassador for Grenada.