In the midst of the crypto crash, Tron managed to increase by more than 25% in prices. The reason for this increase is not only technical. Tron announced the launch of their algorithmic stablecoin called USDD. This announcement will not only make TRX soar in valuation soon, but increase its use case. Why should you consider buying TRX today? Is Tron USDD stablecoin going to affect TRX heavily? Read on to see how you can make a quick buck thanks to TRON 😉
What is TRON Crypto?
Tron is a blockchain that seeks to speed up transaction processing. Tron claims to be able to handle 2,000 transactions per second, while Bitcoin and Ethereum can only handle 6 and 25 transactions per second (TPS). It’s a decentralized platform for sharing and entertaining information. Tron purchased BitTorrent, a popular file-sharing website, in 2018.
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Tron’s ambitions include creating an all-in-one platform for file sharing with monetary incentives and letting content creators (particularly in the game sector) monetize their work. They’re also one of the most often used blockchains for hosting decentralized applications (DApps).
What is USDD Crypto?
The Tron crypto project launched USDD (Decentralized USD). It is an algorithmic stablecoin, much like Terra’s UST. They claim to be able to combine price stability with fiat currencies and other cryptocurrencies such as Bitcoin. This is done by creating a basket of currencies and cryptocurrencies to maintain the price. Volatility was a hot topic in the cryptocurrency community. It is one of the key reasons why investors are hesitant to invest in cryptos. Tron hopes to change that with the launch of its USDD stablecoin. Through a patented algorithm that automatically changes stablecoin supply based on demand, they would maintain a “one stablecoin to one fiat” peg. This is made possible by TRX, their token, which provides liquidity, price stability, and is easily swappable to other stablecoins at advantageous exchange rates.
Is USDD a good investment?
Buying a stablecoin won’t yield you anything if you’re thinking about buying and holding. It is called a “stablecoin” because its price is…stable. It is pegged to the US dollar, so 1 USDD = 1 USD. However, there is another way to benefit from USDD. Just like traditional currencies where you can lock them up in a savings account and earn a yield, you can do the same with USDD.
The company announced in another tweet the possibility to earn “big yields” by two types of mining:
- Designated mining: this process is done through a centralized platform such as SunSwap, JustLend and Poloniex. This will yield a profit of a maximum 30% APR.
- Cooperative mining: this process is done directly through the TRON DAO reserve. The yield for this method will fluctuate around 30%.
How to Buy USDD stablecoin?
There are currently 3 ways to buy USDD. Each way is done through a different DeFi platform.
#1 Buy USDD on SunSwap
SunSwap is an exchange protocol that runs on the TRON blockchain for exchanging TRC20 tokens. That’s why you’ll need to own TRX for this method. Make sure to buy TRX here, then go to SunSwap and make the USSD/TRX swap!
#2 Buy USDD on PancakeSwap
PancakeSwap is another type of DEX better known as an automated market maker (AMM). It operates on the Binance Smart Chain (BSC). For this method, you’ll need to buy some BUSD here, then go to Pancakeswap and swap USDD/BUSD.
#3 Buy USSD on Uniswap
Will TRX go up because of USDD?
It is very normal for TRX to increase in value soon. Despite the current crypto crash, Tron managed to pull a +25% return within less than 7 days. Imagine what would’ve happened to prices if the crypto market was on an uptrend! Not only would TRX break the strong psychological price of $0.1, but the market capitalization increase would bring Tron to at least the top 15.
When Terra launched its algorithmic stablecoin, its market cap soared and reached the top 10 within weeks. Terra has a current market cap of USD 28 billion, while Tron has a current market cap of USD 8 Billion. The price barely moved by 25% so far. Doubling in market cap would bring Tron’s market cap to at least double, making it #13 biggest crypto project.