Justin Sun, the founder of Tron, has just announced plans to launch USDD 2.0, an improved version of the USDD stablecoin, with an attractive interest rate of 20% APY, fully subsidized by Tron. The goal of the new version is to address the limitations of USDD 1.0, which previously failed to maintain its peg to the USD.

Significant Commitment of USDD 2.0

  • 20% APY: Tron asserts that all interest will be directly transferred to a transparent address.

  • Funding from Tron: The company emphasizes that they have enough financial resources to maintain this subsidy.

  • Transparency: Justin Sun is committed to improving the issues that existed in the previous version.

Skepticism from the Community

  • Lessons from USDD 1.0: Previously lost its peg multiple times, sharply reduced interest rates, and lacked transparency in collateral management.

  • Long-term risks: A 20% interest rate subsidy requires substantial resources, and this model cannot be sustained without a sustainable profit plan.

  • Volatility of TRX: The TRX token – the main funding source – lacks the necessary stability to support a stablecoin.

Prospects and Challenges

Although USDD 2.0 may create a buzz in the short term, the community still questions the feasibility of the project, particularly Tron’s ability to maintain a high subsidy without generating sustainable profits.

Meanwhile, the market is waiting to see if Tron can truly reposition USDD as a stable and reliable stablecoin, or if this will be another effort with a similar outcome to the first version.
#Tron #USDD #JustinSun