Amei
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The USDD stablecoin passionately promoted by Sun Yuchen; historical events you need to know about the 20% annualized yield!
The crisis of USDD was not as sensational as the collapses of other algorithmic stablecoins (like UST and LUNA), but its stability issues did attract some attention during the instability period of the cryptocurrency market. Here are some backgrounds on the USDD crisis and related issues:
1. The inherent risks of algorithmic stablecoins
As an algorithmic stablecoin, USDD, similar to Terra's UST, relies on algorithms rather than asset reserves for its stability. Although USDD utilizes TRX (the native token of TRON) as support, during severe market fluctuations, the algorithmic mechanism may not be able to adjust the supply promptly, leading to price volatility.
1. The inherent risks of algorithmic stablecoins
As an algorithmic stablecoin, USDD, similar to Terra's UST, relies on algorithms rather than asset reserves for its stability. Although USDD utilizes TRX (the native token of TRON) as support, during severe market fluctuations, the algorithmic mechanism may not be able to adjust the supply promptly, leading to price volatility.
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