Strategic Significance of USD1 Integration in TRON and Its Positive Impact on USDD

A few days ago, I wrote a tweet about HTX launching USD1, detailing some practical use cases for USD1 and actions taken so far. Today, I will analyze the strategic significance of USD1 integration in TRON and its impact on USDD. Is it a competitive relationship or a friendly one?

What is the strategic significance of USD1 integration in TRON?

1/ Enhancing TRON's Adoption Rate and Influence

We all know that USD1 is a stablecoin issued by WLFI, supported by the U.S. President, which undoubtedly carries unmatched influence. When USD1 is integrated into TRON, it means TRON will become one of the main ecosystems for USD1 trading, smart contracts, and DEFI applications.

At the same time, TRON's network characteristics include high throughput and low transaction fees, which can enhance USD1's utility in DEFI and CEFI.

2/ Large-scale Institutional Adoption and Market Recognition

In my previous tweet, I mentioned that the Abu Dhabi sovereign fund invested $2 billion in adopting USD1, causing USD1's market cap to soar from $120 million to $2.12 billion. Due to the Trump family's involvement, the market prospects for USD1 are undoubtedly very promising.

As TRON is one of the main networks for integration, it will directly benefit from USD1's growth, not just in market funds and ecosystem vitality but importantly in political and financial attention.

3/ Increased Network Usage and Transaction Volume

The integration of USD1 will increase TRON's trading activity frequency, as a large number of users and institutions will conduct transfers, storage, and usage of USD1 through TRON, which will also enhance the adoption of TRX in more scenarios.

What positive impacts will USD1 integration in TRON have on USDD?

1/ USD1 will bring a large number of stablecoin users to the TRON ecosystem, with some users attracted by the high rewards of USDD. There is no absolute competitive relationship; the stablecoin market is like a river, and USD1 and USDD promote each other.

2/ USD1 and USDD, along with USDT, which accounts for nearly half of TRON's share, will form a complementary force. USD1 is more suitable for institutional, retail, and payment scenarios, while USDD is more suited for on-chain mining, censorship resistance, and anti-freeze measures, and USDT is more suitable for trading tokens in the market.

Responsibly speaking, the integration of USD1 will directly elevate TRON's adoption rate in certain aspects, while also having a direct promotional effect on USDD within the TRON ecosystem. Imagine if all stablecoin scenarios could be completed in the TRON ecosystem, what would TRON's standing be?

Calling out Justin Sun to answer this question @justinsuntron

What is the current status of USDD?

Since February 1, USDD has strived for high growth and stable growth periods, currently stabilizing at $372M in TVL, while still maintaining an APY of 5-6%. Anyone can directly participate by using TRX, sTRX, or USDT to mint on the USDD official website, or by using USDT for zero-loss exchange directly in the PSM module.

Current APY of USDD on Different Platforms

Currently, some exchanges have subsidy activities that can reach 20% APY. The most convenient and stable is HTX, which offers 6% APY, while also allowing zero-loss exchanges in PSM within the platform. On Justlend, sTRX can be used for dual yield, reaching up to 12-14% APY.

By the way, Justin Sun, can you answer the question I called out?

After USD1, USDD, USDT, etc., cover all stablecoin use scenarios in TRON, what will happen to TRON?

@justinsuntron @usddio @DeFi_JUST @trondao

#TRONEcoStar