Tron Will Not Abandon USDD

Tron founder Justin Sun has said that the Tron ecosystem will not abandon the algorithmic stablecoin USDD despite the collapse of UST and LUNA. According to him, the Terraform Labs product was ruined by too fast growth and a lack of sufficient funds in the reserve fund. He has said:

“I still believe in algorithmic stablecoins. The crypto industry is going to evolve and algorithmic stablecoins have got to be there. We just need more sophisticated and well-planned structures. Thinking about things like leverage, growth and risk.”

According to him, the Terra ecosystem did not collapse because the concept of algorithmic stablecoins is not viable, instead, LUNA was heavily leveraged and grew to an “impressive market capitalization” too quickly.

TRON DAO Reserve has started buying BTC and TRX to back USDD. Sun has said the DAO also acquired the “classic” stablecoins USDT, USDC, and TUSD. He thinks that the presence of these assets in the basket of the organization will quickly provide the liquidity necessary for USDD stability in a volatile market.