Tron Joins the Stable Wars
Tron, a cryptocurrency created by controversial Chinese crypto entrepreneur Justin Sun, is reportedly planning to launch an algorithmic stablecoin called $USDD. The coin might compete with the likes of Terra USD ($UST), Dai ($DAI), and other algo stables.
Algorithmic stablecoins are a type of stablecoins that aren’t backed by fiat currency or another crypto. Instead, algo stablecoins set their monetary policy using code – which keeps the price pegged to the value of an asset. As the name implies, an algorithm underlying these stablecoins increases supply if a deflationary trend is noticed in the token and decreases supply if purchasing power declines — and that’s how the price of an algorithmic stablecoin is determined.