Gate.io AMA with USDD-The First Over-Collateralized Decentralized Stablecoin

2023-03-22, 06:10


Time: July 7th, 2022, 10:00 UTC
Gate.io hosted an AMA (Ask-Me-Anything) session with H.E Mr. Justin (Yuchen) SUN,Ambassador, Permanent Representative of Grenada to the WTO, Founder of TRON in the Gate.io Exchange Community.
Official Website: https://USDD.io/#/
Twitter: https://twitter.com/usddio
Follow USDD on Twitter and Telegram

Guest

H.E Mr. Justin (Yuchen) SUN — Ambassador, Permanent Representative of Grenada to the WTO, Founder of TRON

Q&A from Gate.io

Q1: As we know, USDD has officially upgraded to be the first over-collateralized decentralized stablecoin, could you please introduce more about the content and the significance of the upgraded USDD?

Justin: As a leader of the stablecoin 3.0 Era, USDD has upgraded into the world’s first decentralized, over-collateralized stablecoin, with a guaranteed minimum collateral ratio of 130%. This means for each USDD in existence, there is at least $1.3 worth of collateral locked away. This figure is the highest in the world, coming before DAI with a collateral ratio of 120%, which is considered to be a paragon of the industry. The real-time collateral ratio of USDD is over 300%.

You can learn more here:
https://USDD.io/#/
https://tdr.org/

Besides, USDD is also issued by the TRON DAO Reserve with a stable price and diverse use cases. To support the over-collateralization of USDD, the TRON DAO Reserve, also known as the TDR, has significantly increased its reserves to back USDD‘s total supply. The reserves consist of some of the most liquid assets such as BTC, TRX, USDC, and USDT. All of these have made USDD the safest decentralized stablecoin in the world.
When we mention significance, it is safe to say that USDD‘s evolution is groundbreaking for the crypto industry, the financial market, and even the whole world. By virtue of its ultra-high collateral factor, its cross-chain connectivity granted by BitTorrent Chain, and access to hundreds of millions of TRON users, USDD will benefit more blockchain users and power stablecoins towards full decentralization.

Finally, USDD‘s upgrade will create healthy competition in the race of over-collateralized stablecoins, challenging the incumbent ruler Maker (DAI). The guaranteed over-collateralization using various mainstream cryptocurrencies helps to ensure the stability and security of USDD and to consolidate its value as a true settlement currency.

Q2: I found the real-time collateral ratio of USDD is over 300%. This figure is even higher than the 120% set by DAI, and we know that it is managed by the TRON DAO Reserve. Can you give us a detailed introduction for it?

Justin: By definition, the TDR is a DAO system organized in a decentralized manner. Led by TRON, the decentralized reserve of the blockchain industry takes custody of the initial financial reserve assets raised from the TRON network and other initiators from the blockchain space.
The TDR aims to guard the blockchain industry and the crypto market, prevent panic trading caused by financial crises, and mitigate severe and long-term economic downturns. In addition, the TDR will set risk-free interest rates for stablecoins, regulate the market, and stabilize the exchange rate. It also intends to formulate and implement monetary and exchange rate policies, maintain reserve assets, and minimize systemic risks.
At its initial stage, the TDR will keep the $10 billion raised from the initiators of the blockchain industry as its early-stage reserves. All of them will go to the TDR within 6 to 12 months. These measures guard the blockchain industry and the crypto market while keeping the value of TRX and USDD stable during market downswings.
As of now, Alameda Research, Amber Group, Poloniex, Ankr, Mirana, Multichain, FalconX, and TPS Capital have joined the TDR as members and whitelisted institutions. They will also serve the role of advisors and make recommendations to develop, enhance, and provide general support to the USDD network. As more whitelisted institutions join the TDR as stakeholders, the popularity and adoption of USDD will be taken to the next level.

Q3: What problems did upgraded USDD solve? Are there any changes regarding the peg and reserve for USDD?

Justin: The upgrade of USDD was aimed at achieving over-collateralization and full transparency.
USDD ensures sufficient reserves through the TRON DAO Reserve (TDR). The public has long questioned whether centralized stablecoins are fully backed by reserves due to the lack of transparency in their operations. Decentralized stablecoins, on the other hand, are often more susceptible to black swans in the market, which is the result of their lack of reserves. As the ideal solution, USDD adopted a fully decentralized structure and is backed by the $10 billion initial reserves raised by the TDR.

USDD and the TDR have recently revamped their websites, allowing users to check the breakdown of the collateralized assets and the collateral ratio at all times. The latest stats show that the 723 million USDD in supply is backed by more than $2.26 billion worth of assets, including 14,040.6 BTC, 10.8 billion TRX, 990 million USDC, 140 million USDT, and a further 8.96 billion TRX in the burning contract. These numbers suggest that USDD is the most secure and transparent player in the stablecoin market.

Q4: USDD has circulated on Ethereum, TRON, and BNB Chain. What DeFi protocols and CEXs has it been on? Can you tell us about the current overall progress of USDD and the development of the TRON DAO Reserve?

Justin: We are very proud of our progress so far. Within a month after its launch, USDD has made it into CoinMarketCap’s Top 100 Coins and is now ranked No57. The total supply of USDD has passed $723 million, and the amount of TRX burned has reached 8.96 billion, proof of the incredible momentum so far!
USDD is currently circulating on TRON, BNB Chain, and Ethereum, and is available on multiple platforms such as SUN io, Uniswap, PancakeSwap, Curve, Ellipsis, KyberSwap, Poloniex, Huobi Global, KuCoin, Gate.io, Bybit, Bitget, Lbank, Bibox, BTSE, BitMart, and MEXC. It has drawn in numerous USDD miners thanks to an ultra-high APY.
Additionally, USDD promises around 30% yield on its official mining platforms such as SunSwap, SUN.io, and JustLend. This has added to its charm for DeFi users and spurred the growth of TRON‘s DeFi ecosystem. Stats on Defi Llama reveal that the combined TVL across popular DeFi projects has dropped by around 50% in the past month. Bucking this trend, the TVL on TRON rocketed by 42.7%. This could have never been achieved without USDD.
I would like to remind users of the new 2pool USDD/USDT LP mining on SUN.io. It is easy access for all users from beginners in crypto to more advanced holders and with low risk, high gain dynamic. Everyone can enjoy the high APY now on SUN.io:
https://sun.io/#/stake?search=TYKoYhjEpqazFLyQzn6BCigLnDL9c8Nhz8
Mining tutorial:
@defi_sunio/how-to-participate-in-2pool-liquidity-lp-mining-on-sun-io-3e89ecb9e219" rel="nofollow noopener noreferrer" target="_blank"">https://medium.com/@defi_sunio/how-to-participate-in-2pool-liquidity-lp-mining-on-sun-io-3e89ecb9e219
For those who prefer to use the TRON-based decentralized lending platform JustLend, it is available to supply USDD and earn flexible, profitable gains with risk-free APY.
https://justlend.org/?lang=en-US#/home

Down the road, USDD will go live on more major exchanges worldwide, and we are open to collaboration with you. With the advantages already mentioned, USDD will surely increase the industry’s influence and make finance accessible to everyone.

Q5: DAI is the biggest rival to USDD in the over-collateralized decentralized stablecoin market. What are the advantages that differentiate USDD from DAI?

Justin: Almost no technological innovation in the crypto industry has happened overnight. The underlying cryptography of Bitcoin, for example, derives from research results achieved by previous generations. Likewise, the transformation of USDD is based on Maker’s model. Drawing strength from Maker, USDD has been endowed with the following advantages:

  1. Ultra-high collateral ratio. Both USDD and DAI are over-collateralized decentralized stablecoins, but the former offers a collateral ratio of 130%, surpassing the 120% of DAI and is the highest in the industry. According to real-time stats, the actual collateral ratio of USDD has surged past 130% to hit 315%. This is the key to USDD‘s security and stability, making it a safe asset with the support of sufficient reserves, even when the market crumbles.
  2. Transparency. Users can access the collateral-related information anytime on USDD‘s official website (https://USDD.io) or the TDR’s website (tdr.org). They can also see the number of transfers’ ins and outs of the collateralized assets, the time of the transactions, and the transfer amount in real-time. Such transparency is unprecedented in the current stablecoin market.
  3. High fund utilization rate. Although they are in the same category of over-collateralized stablecoins, DAI allows users to mint tokens, whereas the minting rights of USDD belong to the whitelisted institutions of the TDR. In this sense, the fund utilization rate of USDD outperforms that of DAI. Moreover, compared to the Ether-based DAI, USDD is built on the secure, efficient, and affordable TRON chain. Users can enjoy both a smoother experience and lower gas fees, which can further improve the fund utilization rate.

Q6: You have mentioned the four stages of USDD in your open letter. What are they?

Justin: The roadmap of USDD consists of four stages—1.0 Space, 2.0 ISS, 3.0 Moon, and 4.0 Mars — echoing TRON‘s efforts in future space exploration. In June 2021, I won the Jeff Bezos Blue Origin $28 Million space venture auction to fly and explore space with five warriors this year. This pioneering spirit of exploring uncharted territory is in TRON‘s DNA.
The testnet of USDD will officially go live in the first three stages. By then, minting, swapping, and burning of USDD will be fully decentralized, and the rights of issuing and burning USDD will be entirely handed over to the TRON network. With 4.0 Mars, USDD Mainnet will officially go live, and the TDR will entrust its right to issue and burn USDD to USDD Mainnet. ​​
After going through the above stages, the TRON ecosystem will have put in place strong support for the USDD protocol spanning community, wallet, blockchain explorer, swap, and mining.
I believe that USDD will usher in a new growth phase of stablecoins, the 3.0 era, and replicate the success of TRON-based USDT. Meanwhile, TRON DAO will create a more decentralized future for a multitude of investors.

Q7: The crypto market is known for its unpredictability. But however the market may change, asset security always sits at the core. Could you elaborate on how USDD‘s security is achieved?

Justin: As you already know, USDD is built on the TRON blockchain, on top of this, as a decentralized, over-collateralized stablecoin, USDD offers a chart-topping collateral ratio. This ratio reflects the reserve size that is backing USDD and is, therefore, most indicative of its security. The 130% collateral ratio plus USDD‘s commitment to security since day one have been the key elements for USDD to steadily go mainstream and attract more users in the financial world.
Lastly, USDD adopts a completely decentralized architecture. The USDD protocol is dedicated to providing the blockchain industry with the most stable, decentralized, tamper-proof, and freeze-free stablecoin system, a perpetual system independent from any centralized entity. As we all know, in December 2021, the TRON network achieved full decentralization and became the world’s largest decentralized autonomous organization (DAO). USDD was born with security and transparency, as a major move from TRON to deliver the mission of decentralization.

Q8: You have emphasized many times: “We want USDD to be the new settlement currency of crypto.” What is the development plan of USDD?

Justin: Yes, to enable this, we will focus on liquidity, while making sure USDD has ample reserves.
To help drive a utilitarian adoption of USDD, the TRON DAO Reserve plans to focus efforts on developing utility for USDD across the crypto market. Short-term, TDR will denominate more liquid trading pairs against USDD in DeFi and CeFi.
In DeFi, we plan to ensure all heavily traded on-chain assets have high USDD-denominated liquidity on AMMs. In CeFi, we have already partnered with several centralized exchanges including Huobi, KuCoin, Poloniex, Bybit, BTSE, Bitget, Bibox, Bitrue, and many others to offer rebates to customers who trade asset pairs against USDD. Our aim is for USDD trading pairs to have more liquidity than USDT or USDC on both centralized and decentralized exchanges.
As the industry moves closer to a cross-chain future, USDD will also expand to support multiple chains. I would like to thank the TRON DAO Reserve whitelisted institution Multichain with the BitTorrent Chain for building USDD multi-chain architecture! They work hard with rapid progress and strengthen collaboration to the point where USDD will be able to arbitrarily migrate across BitTorrentChain, Ethereum, Fantom, Avalanche, BNB Chain, Arbitrum, and Optimism.
As USDD is embraced by major exchanges and wallets, through the BTTC cross-chain protocol, blockchain institutions are welcome to support the USDD issued on TRON, Ethereum, and BNB Chain.
In the long term, USDD as the settlement currency for crypto and secured by the over-collateralization of multiple mainstream digital assets, which complements existing fiat currencies and cryptocurrencies as means of transaction and store of value. And USDD has immense potential for adoption and applications. We will continue to focus on business use cases in the field of cryptocurrency. We will soon see increasing users adopting USDD as an online medium of payment, which greatly reduces transaction fees. As the world becomes more decentralized, we will see USDD being integrated with more dApps thanks to its solid tokenomics, making it truly accessible with far-reaching implications for both the blockchain space and the real economy. We’ll keep strengthening the USDD ecosystem to create an increasingly decentralized future for users far and wide!


Author: Rio Fu., Gate.io Community
*This article represents only the views of the researcher and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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