Justin Sun's Tron Reveals More Details of USDD Backing in a Move to Distance It from UST

cryptonews.com:

Crypto entrepreneur Justin Sun’s blockchain Tron (TRX) has revealed details about the backing of its new algorithmic stablecoin USDD in what appears to be an effort to maintain confidence in the project following the collapse of major algorithmic stablecoin terraUSD (UST).

According to the Tron DAO Reserve’s website, USDD is backed by various cryptoassets and stablecoins, which combined will always make up at least 130% of the total amount of USDD in circulation. Among the collateral assets is Tron’s native TRX token, the stablecoin tether (USDT), and bitcoin (BTC).

The stablecoin on Sunday for the first time shared real-time updates on its collateralization ratio on its website. As of Monday at 09:00 UTC, the DAO said it has USD 841.8m in its reserves, with a collateralization ratio for USDD of 226.1%.

Naturally, it is speculated that the move to overcollateralize USDD comes after the collapse of UST, which was only partially backed by other digital assets.

According to comments by Justin Sun, the move to overcollateralize USDD has always been the plan, although he admitted that it had been moved higher up on the list of priorities after UST’s collapse.

“This has been in the plan, but Terra/Luna definitely accelerated and prioritized this for our team [...] We want to have USDD to be overcollateralized, which I think will make market participants more comfortable about using us in the future,” Sun was quoted by Bloomberg as saying.

The new stablecoin was unveiled by Justin Sun as recently as April this year, with Sun then calling it “the most decentralized stablecoin in human history.” However, the plan was widely criticized for building on the same model as the failed UST, which famously offered 20% yields to depositors on A