- Tron has launched a MakerDAO-like stablecoin model
- Justin Sun on Twitter launched the new initiative
- The new stablecoin is a USD-pegged coin known as USDJ
Tron News Today – The Tron Foundation has announced the launch of a MakerDAO-like stablecoin known as “Djed.” The announcement was made by Tron chief Justin Sun on Sunday. This is a new milestone for the Blockchain network in its drive for new solutions for users of digital assets as Sun announced on Twitter. The report adds that the new decentralized digital asset will be backed by both Tron and BitTorrent. Let’s see more details of the new cryptographic project.
Tron Chief Unveiled the New Project on Sunday Via Twitter
Justin Sun reportedly unveiled this new system the founder and chief of the Tron Foundation. He took to Twitter this past weekend to give the announcement. Sun had initially revealed news of the project two months ago. At that time, Sun said the Tron community will launch a decentralized stablecoin that will be backed by Tron’s TRX and BitTorrent’s BTT tokens.
Recall that Sun’s Tron Foundation completed the acquisition of BitTorrent in 2018. Per the report, the new stablecoin will be called “USDJ.” The USDJ is a USD-pegged digital coin that is backed by collateral assets. Here is how the system’s whitepaper puts it:
“The USDJ token is a new digital currency that is generated via decentralized smart contracts on Tron’s network. All users can pledge their TRX as collateral should they desire to generate the USDJ coin. The USDJ stablecoin will enter free circulation like other cryptocurrencies once it is generated. The coin is pegged to the USD through CDP’s (Collateralized Debt Positions). It has an autonomous feedback mechanism.”
BitTorrent’s Token isn’t Currently Mentioned in Djed’s Whitepaper
Another notable feature of Djed’s whitepaper is the fact that the BTT token is not mentioned as a part of the Djed system. Additionally, just as is the case with the MakerDAO stablecoin model, the Djed project offers a stability fee and practices a community governance system. The protocol also includes a liquidation mechanism, among a host of great features. Here is what the new protocol had to say after the announcement:
“We believe that in a successful community governance model, the USDJ stablecoin will bring its advantages as a reliable stablecoin into play and be widely used across the Tron network. We also believe that the USDJ will become an important part of Tron’s DeFi [decentralized finance] sector.”
More data about the new system will be reported as the project develops.