Tron network founder Justin Sun (the one with the $6.24 million banana) officially announced the debut of the updated stablecoin USDD. According to him, coin holders will receive a yield of up to 20% per annum (APY), which will be fully subsidized by Tron DAO. All payments will be transferred in advance to a transparent crypto wallet to ensure maximum trust from investors.
“There is no secret — we have a lot of money. So stop asking where the yield comes from,” — wrote Sun on his account on X.
Information about the new version of the stablecoin is very limited. The project’s whitepaper was last updated in 2022, and changes in management were recorded in May 2023. Meanwhile, the USDD 2.0 beta site mentions that the stablecoin will shed most of its algorithmic functions. Instead, it will operate on the JUST DAO ($JST) model, allowing users to create Tron-backed stablecoins.
It is preliminarily known that the main assets for backing will be Wrapped Tron (WTRX), Tether (USDT), and CryptoFlow (FLOW). However, discussions on launching on Tron management platforms such as JustLend DAO or JUST Stable Governance have not yet been conducted.
The previous version of USDD, launched in May 2022, was unsuccessful. The product repeatedly lost its peg to the US dollar, which caused a significant drop in trust among the crypto community. In April 2024, its price dropped to $0.97. Subsequently, Tron DAO withdrew reserves in the amount of $750 million in bitcoins, further undermining the stability of the project.
Experts are highly skeptical about the announced yield. The main question is: how exactly does Tron plan to finance the payments? Although TRX, the native token of the Tron ecosystem, recently reached a historical maximum, its growth is not stable. At the time of writing, the value of TRX is $0.2352.
Despite these failures, Sun remains optimistic. He stated that the new stablecoin will be a better version, fully backed by Tron DAO funds. Perhaps he is counting on the benefits from Trump’s presidency? In November 2024, Sun became the biggest investor in the crypto platform World Liberty Financial (WLFI). The founder of Tron purchased WLFI tokens for $30 million, enabling Trump’s company to finally reach profitability.
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