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- Tron plans to upgrade USDD in Q4, aiming to position it as a leading decentralized stablecoin backed by TRX’s $16B market cap.
- Justin Sun targets a $3B market cap for USDD, leveraging Tron’s strong liquidity and over $2B in annual on-chain revenue.
- Tron’s upgraded USDD will focus on transparency, adding Bitcoin as collateral and utilizing TRX’s stable performance.
Tron’s founder, Justin Sun, has announced that in Q4 of 2024, the network’s top priority will be upgrading USDD stablecoin. The announcement, shared on X Sun, highlights Tron’s determination to make USDD the market’s top decentralized stablecoin by market capitalization and trading volume.
In Q4, Tron's top priority is upgrading USDD to position it as the definitive decentralized stablecoin in the crypto market. We have several powerful initiatives planned to make this a reality.
— H.E. Justin Sun🌞(hiring) (@justinsuntron) October 27, 2024
Since the initial launch, Tron's market cap and liquidity depth have significantly…
Sun highlighted that Tron’s current market cap has exceeded $16 billion, with over $200 million in liquidity depth. He emphasized that these factors create an ideal timing for USDD’s relaunch. Tron anticipates its valuation could rise to $30 billion.
According to Sun, this would allow the network to comfortably support a stablecoin with a market cap of $3 billion while generating reliable on-chain returns for TRX holders.
USDD Relaunch: Strengthening Decentralized Stablecoin Market
Tron’s plan to upgrade USDD aims to solidify its position as a prominent decentralized stablecoin. Sun highlighted that the USDD relaunch will prioritize transparency, offering full visibility for reward accounts and detailed issuance parameters.
He also noted that TRX has been stable, with no 5% daily pullbacks for over a year, proving its reliability as USDD collateral. Sun forecasts that using TRX as collateral will generate an annualized yield of over 10%.
Additionally, Tron’s $2 billion annual on-chain revenue and token burn mechanism will bolster UDD’s growth and stability. This financial foundation is expected to meet market demand for a decentralized stablecoin with a market cap between $2 and $3 billion.
Collateral Security and Future Developments
Sun acknowledged the concerns surrounding decentralized stablecoins, particularly the issue of collateral security during market downturns. He reassured the community that technical safeguards have been implemented to prevent cascading liquidations, though he refrained from detailing these measures at this stage. Specific release parameters for the upgraded USDD will be provided to ensure transparency and confidence in the system.
Sun also revealed plans to incorporate Bitcoin as additional collateral for USDD. USDT is the primary PSM (Peg Stability Module) direct exchange channel for the stablecoin. These developments aim to bolster USDD’s role in the DeFi space, supported by Tron’s liquidity and market growth.