TRON founder Justin Sun has announced that USDD, the decentralized stablecoin issued by the TRON DAO Reserve, has surpassed $170 million in staking. Sun, who took to X (Twitter) to share the milestone, added that reaching $200 million in staking is “not far away.”
What is USDD?
USDD is designed to maintain a 1:1 peg with the US dollar, offering users a decentralized and reliable medium for payments, trading, staking, and value storage.
Unlike traditional stablecoins backed solely by fiat reserves, USDD is backed by a basket of cryptocurrencies, including Bitcoin, Ethereum, and TRON, ensuring diversified collateralization.
Justin Sun Proposes 20% APY for CEXs to Boost USDD Adoption
To increase USDD’s adoption, Sun has proposed a bold incentive to major centralized exchanges (CEXs). He is offering a 20% annualized reward for platforms that integrate USDD, making it an attractive option for exchanges looking to expand their stablecoin offerings.
One of the key aspects of this proposal is Sun’s emphasis on USDD’s liquidity and stability. He highlighted that USDD can be exchanged for USDT at a 1:1 lossless ratio, reinforcing its reliability as a stablecoin.
By offering these incentives, Sun aims to bridge the gap between USDD’s strong on-chain presence and its limited support on centralized exchanges.
Also Read: Justin Sun Declares Tron ($TRX) As Antarctic Legal Tender, Raises Eyebrows
Introducing USDD 2.0: A New Era for TRON’s Stablecoin
Sun recently announced the launch of USDD 2.0, a revamped version of the stablecoin that will introduce a 20% annual percentage yield (APY), fully subsidized by TRON DAO.
This move is expected to drive further interest in USDD staking, particularly as the crypto market navigates a late-stage bull cycle.
Sun’s decision to roll out such high-staking rewards comes at a strategic time, as market sentiment is expected to shift following Donald Trump’s potential return to office on January 20, 2025.
Many analysts believe a pro-crypto stance from the U.S. government could reignite bullish momentum, making it an opportune moment to push for broader stablecoin adoption.
What’s Next for USDD?
USDD’s growing staking volume and Sun’s aggressive expansion strategy suggest an ambitious push toward mainstream adoption.
While the stablecoin has made significant progress in the DeFi sector, its lack of widespread support on centralized exchanges remains a challenge. If major CEXs accept Sun’s proposal, USDD could see greater adoption, increased liquidity, and a more competitive position against established stablecoins like USDT and USDC.
With USDD 2.0’s launch and the potential for a shifting regulatory landscape, the coming months will be crucial in determining whether Sun’s vision for a decentralized stablecoin can achieve long-term success.