Justin Sun Enters Stable Coin Wars - USDDon't

frens, stable coins have become a hot topic lately in the crypto space. Someone has to show up and ruin it, right?

Tron enters the Stable Coin Wars

If you're confused about what I mean when I'm saying stable coin wars... Well, it seems that stable coins are the new hot topic in crypto as Terra's UST has become more popular lately. The founder Do Kwon even stated that "by my hands, DAI will die" recently, before adding large amounts of Bitcoin to Terra's reserves to back the UST stable coin. Terra is attempting to kill the USDT-USDC-DAI stable coin pool on Curve and replace it with a new pool, USDT-USDC-UST-FRAX.

It takes a lot to replace one of the longest standing stable coins, but it looks like Terra is making all the right moves to do so with UST. Will DAI ever die? Doubtful. Will UST over take it? Probably. Hell, even HBD is getting a lot of attention recently as the LeoFinance team gave it cross-chain superpowers via pHBD on the Polygon blockchain.

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The stable coin wars seems to be aimed at getting the most total value locked in whatever DeFi protocol by offering high APY yields for staking them. PolyCUB is offering 52% APY on stable coins via its pHBD-USDC farm. Anchor is offering nearly 20% APY on UST staking. Hive is offering 20% APR on staking native HBD in savings. It's a true all-out war on which protocol can offer the highest yield on staking stable coins in the protocol.

As with everything good happening in the crypto world though, there has to be a bad actor that tries to ruin it. Once again, Justin Sun comes to the rescue to try and shake the whole market up. That went really well when he executed a hostile takeover of the Steem blockchain and website. Now he's here to play with the announcement of the Tron blockchain's new native stablecoin USDD. I like to call it USDDon't because I would never even consider touching it.

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As much as this looks like a "copy-paste" of UST, it's going to work a little different. USDD will (supposedly) be an algorithmic stable coin that will maintain its peg to $1 by offering a way for traders and arbitragers to trade it against itself. For example - if the price of USDD is below $1, users can trade 1 USDD for $1 worth of TRX. If the price of USDD is above $1, users can trade $1 worth of TRX for 1 USDD. This will help the new stable coin stay as close to $1 as possible, and of course Justin is confident that it will work very well.

In yet another "copy-paste" move, Justin plans to back USDD with $10 billion in crypto assets just like Do Kwon is doing for UST with $10 billion worth of Bitcoin. The difference here is that instead of just using Bitcoin to back USDD, Justin did not specify which assets will be used to back USDD. Probably a metric shit ton of TRX and other "highly liquid assets". I'd bet that there will be some USDT in the reserves as USDT currently acts as the most-used stable coin on Tron.

USDDon't will be launched as a cross-chain token on Tron, Ethereum, and BNB Chain via BitTorrent's cross-chain protocol. Man that felt weird to write. This shit is being launched via BitTorrent.... Which is another platform that Justin ruined. Lol.

Look - I'm not sayin that USDD won't be useful for some people. Maybe the people that already use the Tron blockchain or are fans of Justin (for whatever reason) will find it very useful. He claims that the protocol will offer like 30% APY on staking it so... It seems attractive. I just have major trust issues with this guy.

Supposedly all this is going to be managed by the Tron DAO, which Justin probably owns 100%. That's a topic for another day though. Can't wait to see USDDon't hit the markets.

Thanks for reading! Much love.

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