Tron Founder Justin Sun Announces USDD Deposit Rewards; Promotes the JustLend loan protocol

Justin Sun, the founder of the Tron blockchain, in a Twitter announcement, said traders will now be able to earn deposit rewards on the recently launched USDD deposit, an algorithmic stablecoin created to function as Terra’s nearly defunct UST. , to JustLend , which is a Tron-based lending protocol.

They will be able to earn yield in both USDD and JUST stablecoin to deposit in USDD.

A lending protocol, JustLend, is similar to Compound on Ethereum. However, Compound as of now has APY rates mostly in the low digits; on the other hand, JustLend promotes rates as high as 30% – despite the fact that JUST also noted gains of 70% and the rate continues to fluctuate throughout the day. It’s also worth noting that around 10-20 percentage points more than Anchor, Terra’s own lending protocol, was offered before a liquidity crisis there to a bank that destroyed the network.

Sun said Tron DAO last month. Tron DAO is a seemingly user-controlled organization that makes governance decisions regarding the network and will begin issuing a decentralized stablecoin supported by TRX.

When the price of USDD is below $1, users and arbitrageurs will be able to receive $1 worth of TRX by sending 1 USDD to the system, Sun said at the time. When the price of USDD is above 1 USDD, users and arbitrageurs will be able to receive 1 USDD by sending 1 USD worth of TRX to the decentralized system. This is the same system used by Terra.

Terra’s UST required a utility to maintain the system to keep the system supported. Anchor Protocol provided this, as it was funded by the founders of Terra’s Luna Foundation Guard setup to promote ecosystem development. For depositing their UST, people who deposited their stablecoins were rewarded by Anchor.

Users escorted the bus as interest rates began to fall, swapping their UST for LUNA, draining LUNA and as a result this caused a death spiral leading to the implosion of the entire network, contributing to a bigger stock market crash.

However, Tron and Sun got a backup plan similar to Kwon and Terra. Tron DAO said it was looking for 10 billion in assets for a reserve to use in the event of a financial crisis when Sun made the USDD announcement.

Luna Foundation Guard had the same target as the LUNA Foundation Guard. Terra, however, only managed to raise $3 billion in a combination of Avalanche, Bitcoin, LUNA, and UST. Interestingly, this was not enough to end the crash of an $18 billion stablecoin and a $30 billion network token.

Steve Anderson
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