Still bullish for algorithmic stablecoins? Find out if TRON's native stablecoin USDD is worth investing in.

What Is USDD: The Tron Stablecoin Promising 30% Apy

USDD is a TRON stablecoin and digital asset that launched on BNB Chain, Ethereum and TRON on May 5, 2022. Justin Sun claims that USDD will provide investors with an annual percentage yield of 30%.

The algorithmic stablecoin system reduces the total number of tokens available once the price dips below its preferred value. In the event that the token’s price goes higher than the preferred price, more tokens will be put into circulation to alter the stablecoin's value enough for it to dip to the correct price. The purpose of using an algorithmic stablecoin is to have more control over a coin's supply and demand.

 over the years, the latest of which is central to the TRON stablecoin. When this stablecoin was first announced in late April, many crypto holders claimed that the stablecoin was a copy of Terra's UST stablecoin. Despite these claims, Do Kwon, the founder of Terra, has stated that he welcomes the initiative and hinted at the possibility of a TRON partnership at some point in the future.

The USDD stablecoin is directly managed by TRON DAO and is set to be pegged to the U.S. dollar at a 1:1 ratio, which means that the value of this digital currency is tied to the value of the U.S. dollar. If you've invested in Terra's UST before, the USDD stablecoin functions almost just like the Terra UST. Both of these are algorithmic stablecoins.

When the stablecoin dips below the aforementioned peg ratio, users are given the opportunity to redeem a single USDD for one U.S. dollar. When the price of the stablecoin goes higher than the $1 pegged amount, it's possible to trade one U.S. dollar for one USDD.

At the moment, the USDD stablecoin is expected to adhere to a four-stage road map. These stages are separated into the Space, International Space Station, Moon and Mars stages. At the moment, details are only known about the initial two stages, and are centered around the strategies and management techniques that will allow the USDD stablecoin to remain pegged.

During the 1.0 Space stage, USDD stablecoin management is given to major blockchain institutions as well as the TRON DAO reserve. The TRON DAO reserve delivers custody service of the $10 billion in liquid assets that were raised from partners in the blockchain industry.

These assets are used as early-stage reserves to make sure that the USDD rate remains stable and that convertibility is allowed. Once the TRON stablecoin was launched on May 5, the TRON DAO reserve set the risk-free interest rate at 30% per year. They’re also encouraging other centralized and decentralized organizations that accept the USDD stablecoin to implement relatively consistent rates. Keep in mind, however, that other organizations don't have to adhere to Tron's guidance.

Since USDD and UST are both considered to be algorithmic stablecoins, they have many similarities. In fact, the USDD stablecoin road map is almost the same as the UST road map. Despite their similarities, there are also several differences to be aware of before selecting a stablecoin to invest in. To better understand the similarities and differences between these two stablecoins, let’s look at the primary differences between USDD and UST.

USDD is TRON’s stablecoin which maintains stability with the use of smart contracts and algorithms. TerraUSD (UST) is another algorithmic stablecoin that's completely decentralized, and is available on the Terra blockchain. This is a yield-bearing and scalable coin that's pegged directly to the U.S. dollar.

Other than the algorithmic methods that are used to help UST maintain its value, the main similarity between UST and the USDD stablecoin is that both of these stablecoins are pegged to the U.S. dollar. Terra is aiming to form an extensive ecosystem around UST and 

. While considering the differences between UST and the USDD stablecoin, the APY for these coins is set at 19.5% and 30% respectively.

. This mechanism gives Oracle the ability to display the USDD price directly on the Tron network. A coupon is submitted that shows the current exchange rate of USDD to USD.

USDD tokenomics are fairly straightforward. In fact, if you have any previous experience investing in UST with Terra, you’ll have a decent understanding of USDD tokenomics. The USDD stablecoin is built directly on the TRON blockchain. Users can swap or trade their TRX coins to receive USDD currency.

The value of USDD invariably fluctuates over time, since its value is driven by demand and supply. The current value of USD also plays a role in USDD’s current value. When the value of USDD exceeds one U.S. dollar, more coins will be placed in the market to keep the price relatively stable.

In the weeks since its initial launch, the TRON DAO reserve has purchased nearly $40 million TRX, which amounted to more than 500,000,000 coins. This purchase was made on behalf of the TRON DAO reserve. The reason that Tron purchased these coins from its own market was to safeguard USDD and the blockchain industry as a whole.

At the moment, the total supply of USDD is just over 500 million. The value of USDD is stable at the moment, with a price that's somewhat higher than the U.S. dollar. As such, the total market value of this TRON stablecoin is a little more than $500 million. Even though the market capitalization of Terra's UST is considerably higher at the moment, the USDD stablecoin has only been around since early May, and should continue to increase for the foreseeable future.

During the most recent 24-hour period, nearly $190 million of the TRON stablecoin was traded, which marked a 37% increase from the day before. When looking at historical USDD data, the market has opened at $1.00 more often than not. The lowest opening was around $0.9971, which occurred on the first day of trading. When the stablecoin first launched on May 5, it had a market capitalization of a little over $127 million. Since then, it has increased to a market cap of around $500 million.

Even though the TRON stablecoin is relatively new and has been on the crypto market for less than a month, there are already signs that can help you determine if USDD is a good investment, or one that you should avoid. With this information in mind, you can make a more informed decision as to what's best for your portfolio.

Based on everything we know about USDD up until this point, it's a great investment opportunity as long as you understand the inherent risk that comes with investing in any cryptocurrency. Markets are generally volatile. However, the manner in which USDD was implemented means that the price of the coin should remain relatively stable in the future. Since USDD is pegged with the U.S. dollar, the price of this stablecoin should continue to remain almost 1:1 with the value of the dollar.

Keep in mind that obtaining returns which match the intended APY of 30% will require you to engage in mining. Even though some crypto investors have accused Justin Sun of creating a stablecoin that almost mirrors Terra's UST, you should expect the USDD stablecoin to have a similar performance when compared to most other stablecoins that are currently on the market.

If you would like to invest in the USDD stablecoin, you can do so from a wide range of different cryptocurrency markets. The market you choose largely depends on which one you prefer. The primary marketplaces you can purchase USDD with include 

, Poloniex, KuCoin, and Huobi Global. At the moment, the price is oscillating between $0.994 and $1.00, depending on the marketplace of your choice.

On a marketplace like Poloniex, the process of buying USDD or other stablecoins can be performed in four basic steps:

Now that you have a better idea of what USDD is, you have the info required to determine if the USDD stablecoin is right for you and your crypto portfolio. While this stablecoin is relatively new, it offers some distinct advantages that may pay dividends in the future. As an algorithmic stablecoin, USDD is very similar to the UST stablecoin. If you have knowledge of how to properly utilize UST, this can work as the basis of your USDD investments.

Intermediate

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What Is USDD: The 30% APY TRON Stablecoin From Justin Sun

If you've been keeping up with crypto, you'd probably have heard about the recent UST-LUNA crash. UST is an algorithmic stablecoin — but what is a stablecoin, and how does an algorithmic stablecoin work? Here's everything you need to know.

 have a highly volatile nature which depends upon factors such as market conditions and the demand-and-supply of the 

. The level of risk involved can be intimidating to some people. Enter 

 — a crypto asset class which has become an integral part of the ecosystem in the past few years. In particular, one subtype of stablecoins — the algorithmic stablecoin — utilizes technology to help automate the trading process.

This article will take you through the concepts of stablecoins and algorithmic stablecoins, their key features, and the different types of algorithmic stablecoins currently making their rounds in the crypto market.

A stablecoin is a type of cryptocurrency that offers better stability compared to its peers, as it derives its price from another asset’s value. This process of pegging a stablecoin to an underlying asset is the main reason for its growing popularity in the crypto world. Reports suggest that the 

, from $5.9 billion in 2020 to more than $35 billion by the beginning of 2021. Meanwhile, stablecoin usage 

Stablecoins facilitate trades on crypto exchanges, including 

 and lending activities on the crypto network. Additionally, stablecoins can be used to mitigate trading fees on most exchanges, since there’s no charge when exchanging U.S. dollars for a stablecoin. 

Traders have the option to exchange fiat currency for a stablecoin and then exchange the stablecoin for another 

, thereby saving on trading fees. Instead of buying Bitcoin directly with fiat currency (e.g., the U.S. dollar), traders often exchange fiat currency for a stablecoin – and then execute a trade with the stablecoin for another cryptocurrency, such as 

 central governing authority. When you buy a stablecoin, you accept that the issuer has a sufficient amount of assets pegged to the stablecoin. The value of a stablecoin doesn’t fluctuate much over time if it’s pegged to a commodity that’s comparatively less volatile. To understand the value of a stablecoin, here’s a simple explanation:

 is a stablecoin that’s pegged to the U.S. dollar. If you hold 1 USDT in your wallet, its value is worth 1 USD. You can then trade the stablecoin against any crypto coin without the risk of incurring huge losses associated with market fluctuations.

A graph depicting how the total market capitalization of stablecoins has increased 10x since the beginning of 2020. 

Algorithmic stablecoins don’t have any collateral attached to them. As such, they’re referred to as “non-collateralized” stablecoins. They’re decentralized in nature, and are tailored to improve market price stability without involving a central authority — which is often done by “pre-programming” the supply to match the demand of the asset. This is done by using predetermined stabilization measures hardcoded into 

The algorithm underlying these stablecoins is programmed to increase the supply of currency in the event of a “deflationary trend” in the token, and to decrease the supply of the currency in the event of a “decline in purchasing power.” The way these algorithmic stablecoins respond to market events with automated stabilization measures increases their decentralized nature, giving rise to a smart, responsive currency that’s not controlled by a single institution — which is similar to a central bank’s working model.

These purely algorithmic stablecoins reveal the internal logic of the tokens and any collateral used for maintaining token value, thereby maintaining transparency on the network. 

An algorithmic stablecoin stabilizes the market through the mechanisms of buying and selling the referenced asset or its derivatives. It uses an Ethereum-based cryptocurrency protocol that issues coins when the price surges and buys them from the market when the price drops. 

Here is how algorithmic stablecoins work:

A flowchart explaining the working of algorithm stablecoins. 

An algorithmic stablecoin aims to help traders (advanced and new users) get comfortable with the idea of trading. Some features of algorithmic stablecoins include:

Stablecoins are stores of value because of the limited price volatility associated with them, along with the convenience of using these coins. Thus, stablecoins can be easily 

 for cross-border transactions. These stablecoins also reveal collateral diversification, creating resistance to 

The parameters of the algorithm, which is hardcoded into the smart contracts, ensure an automatic reaction to market data without direct manual intervention. These parameters aim to stabilize market 

 for these tokens after studying underlying market conditions.

Stablecoins can be stored in virtual wallets to ensure security by using a 

. Only the stablecoin holder can access the associated funds. Advanced encryption technology can be leveraged for additional security levels. 

Algorithmic stablecoins provide true decentralization within the stablecoin market by removing third-party interference, a mechanism popular among traditional stablecoins. These stablecoins eliminate the problems that come with raising enough capital required to serve as the reserve.

Algorithmic stablecoins can be used to trade on crypto exchanges, including staking and lending on crypto networks. Investors can avoid the trading fees charged by most exchanges imposed while exchanging U.S. dollars for a stablecoin. Instead, they can exchange fiat currency for a stablecoin and then exchange the stablecoin for another cryptocurrency.

While different algorithmic decentralized stablecoins have varied features or traits, they generally follow the same protocols. Following are the different types of algorithmic stablecoins.

By rebasing algorithmic stablecoins, the supply regulates their value. The algorithm in a rebase mechanism automatically decreases the supply of coins when their price drops below a threshold, and issues additional coins when it rises above a specific level. This mechanism maintains the value of the coin, irrespective of market conditions. The idea is to ensure that if you have 1% of the supply before the rebase, you’ll still have 1% after it — even when the number of tokens in your wallet fluctuates. This means you retain your share of the network, regardless of the price of the native token. 

 model, instead of a “rebasing” currency there are two tokens: A supply-elastic currency, and investment shares of the network. Owners of the latter are sole receptors of inflationary rewards (from positive supply increases) and the sole bearers of the debt burden (when demand for the currency falls and the network contracts).

Over-collateralized stablecoins need a large number of cryptocurrency tokens maintained as a reserve for issuing a lower number of stablecoins. This is done as a buffer against price fluctuations. An example of an over-collateralized stablecoin is MakerDAO's 

, which is collateralized with ETH cryptocurrency. This stablecoin requires a minimum of 150% of collateralization. This means that if the price of the underlying cryptocurrency drops low enough, the stablecoins will automatically be liquidated. 

Fractional algorithmic stablecoins are partially collateralized, and are backed by both asset collateralization and cryptographic algorithms. This protocol uses two different assets, namely the Frax (FRAX) stablecoin (to maintain a 1:1 peg to the U.S. dollar) and the Frax Share (FXS) governance and utility token. A user can mint FRAX by supplying the USDC stablecoin as collateral, along with the FXS token, in accordance with the quantity set by the Frax collateral ratio (CR).

The potential risks involved with algorithmic stablecoins are that they can be tenuous in times of financial crisis or periods of extreme volatility. Here are some of these risks.

Algorithmic stablecoins face the risk of decreased and increased supply every time the market fluctuates. In cases where the digital asset’s price exceeds the valued price, more tokens are generated by the algorithm. The newly generated tokens circulate on the network, to be purchased by potential traders. If the price drops below the valued price, the algorithm burns the tokens. This reduction in supply is compensated for by offering bonds to buyers — who get paid only when the price rises above the valued price. 

Reliance on oracle technologies creates an information bottleneck, since blockchains cannot access data outside their protocol. Oracles are used to obtain prices from exchanges, compare these prices, and adjust the system to maintain the balance. Additionally, the acquired data has to be accurate with respect to the current price. It’s a challenge for developers or project managers to maintain the oracles’ accuracy.

The risk of peg separation (peg break) occurs when a chain breaks away from the parent chain. This is a worst-case scenario for any stablecoin, as it can destabilize the algorithmic stablecoins and cause price fluctuations that eventually could kill the entire project.

[Editor’s note: In light of the recent TerraUSD (UST) crash, please do your own research and proceed with the utmost caution if you’re looking to invest in any algorithmic stablecoin. 

The following is not investment advice, and Bybit will not be held responsible for any losses incurred

 aims to be an index of stablecoins that uses decentralized finance (

) primitives to stay near the dollar mark while subsidising the collateralization ratio in order to protect users from counterparty risk, holdings seizure risk and bank run risk, etc. DefiDollar allows investors to index varying stablecoins with a single token (DUSD) that protects users from the underlying risks attached with such tokens.

Empty Set Dollar (ESD) offers a combination of decentralization, novel protocol mechanisms and 

 that makes it a central part of the DeFi space. ESD is a decentralized, oracle-driven stablecoin that uses novel protocol mechanics to overcome the downfalls of other rebasing tokens. Token holders who do not want to actively maintain the price peg can use ESD in 

, or hold it as a stablecoin without the need for a counterparty or committing funds to a CDP — and without needing to worry about amounts changing in their wallet.

 is looking to serve as a DeFi money market, including services like minting and redeeming the FRAX

 provider (LP) tokens to various trading pairs on 

. The Frax crypto protocol uses two distinct stable assets: Frax stablecoin (FRAX), which is pegged 1:1 to the U.S. dollar, and the Frax Shares (FXS) governance and 

 is a decentralized stablecoin that maintains price stability with a flexible supply. Rebasing is used by the underlying protocol to adjust the supply of AMPL daily. This provides better price stability as compared to fixed-supply cryptocurrencies. Ampleforth’s stablecoin, AMPL, is elastic and non-dilutive.

One of the worst crypto crashes to date took place in April 2022, with the market still struggling to bounce back as of this writing (May 20, 2022). Although many cryptocurrencies recorded massive losses, stablecoin 

 and its sister token, Terra blockchain’s native token 

UST, an algorithmic stablecoin, saw its value 

. As news of its crash hit various crypto-related sites, the topic of algorithmic stablecoins entered the spotlight. 

Are Algorithmic Stablecoins a Good Investment? 

Algorithmic stablecoins aim to stabilize market fluctuation by using smart contracts that are hardcoded to automatically decrease or increase the supply of the coin based on market conditions. This nascent technology is recognized by many investors as a 

 in the crypto world. In the next two years, the stablecoin market is 

In a centralized stablecoin system, investors are susceptible to interference from government regulations in the jurisdictions in which they’re incorporated. If the government decides to freeze the bank accounts of issuers for any reason, then the redeemability of the stablecoin becomes zero, thereby negating its value The decentralized nature of an algorithmic stablecoin protects it from such risks. 

Without a doubt, the UST-LUNA collapse has shaken up the crypto industry. Some regulatory experts say this may mark the end of algorithmic stablecoins; indeed, the future of algorithmic stablecoins looks rather bleak. For now, we expect investors and institutions to stay away from algorithmic stablecoins, and it’s hard to tell what their future holds.

Stablecoins have thus far been regarded as a new and safer form of crypto investment. Algorithmic stablecoins, however, are somewhat of an exception as they 

 The UST-LUNA incident has highlighted some potential areas for concern. Perhaps current technology isn’t nearly sophisticated enough, and 

 amount of regulation/control is required … even for stablecoins.

Algorithmic Stablecoin, Stablecoin, Stablecoins

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What Are Algorithmic Stablecoins? (Lessons Learnt From The UST/LUNA Crash)

A multi-chain stablecoin that's based on the Ethereum blockchain and compliant with regulations, TrueUSD (TUSD) is a great holding for those seeking liquidity and stability.

In the last few years, the world of digital currencies has experienced phenomenal growth. Data collected by 

 in Jan. 2021 suggested that the total number of cryptocurrencies in the world was 7,812, with a combined

 of about $325 billion. As of 2022, the average daily crypto trading volume has hit 

While many people are familiar with crypto market leaders like 

 like TUSD are still relatively unknown to the public. Having said that, they are no less important, and should be included in every crypto 

In this article, we zone in on TUSD: What it is, how it works, steps for buying the token, and more.

 is a platform designed to create asset-backed tokens in the crypto space. The company's website demonstrates an ambition to tokenize assets like oil, movies, timeshares, rental properties, small businesses, and more.

TrustToken has a driven and competent team, with employees hailing from 

. The company's core team comprises its four co-founders: CEO Danny/

 is a stablecoin introduced to the market in early 2018.

 are cryptocurrencies pegged to fiat currencies or commodities that have helped traders earn trading profits more conveniently through significantly fewer interactions with traditional banks every time they place a trade.

Designed to be simple, reliable, and transparent, TrueUSD doesn't use any special algorithm or hidden bank accounts.

TrueUSD's dollar holdings are distributed across various bank accounts belonging to different trust companies. All involved parties have signed a binding agreement to conduct monthly audits and publish collateralized holdings. The TrueUSD token uses multiple escrow accounts to reduce counterparty risk and ensure token holders are legally protected against theft.

TrueUSD works based on Ethereum smart contracts on the Ethereum blockchain. These smart contracts enable a tokenized version of the U.S. dollar to be issued and redeemed.

When a user buys TUSD via the TrustToken platform with U.S. dollars, the 

 underlying the platform automatically generates and issues the equivalent amount of TUSD, which becomes a part of the token's circulating supply.

When a user redeems TUSD through TrustToken, a smart contract automatically burns the tokens being redeemed or removes them permanently from the TUSD circulating supply. Simultaneously, the platform credits the user with a U.S. dollar amount equal to the amount of TUSD redeemed.

TrustToken doesn’t charge purchase or redemption fees on TUSD transactions. Instead, the company generates revenue by collecting interest on the U.S. dollars held in its accounts.

With TrustToken, traders are aware of their ability to buy and sell TUSD at a 1:1 ratio, creating a natural opportunity for 

 in the market and keeping the token at its peg to the dollar.

Every TUSD token has the equivalent U.S. dollar value stored in the bank to back it.

A TUSD token is collateralized by U.S. dollars held in the escrow account company so that the market recognizes the inherent value of TUSD as being equal to the price of the underlying USD. New TUSD tokens are minted and burned by publicly-audited smart contracts to ensure stability.

The TrustToken platform never discourages or prevents legitimate redemptions from verified customers. If an individual or organization passes the anti-money laundering (

) checks on the TrustToken platform, they can redeem TUSD for USD. At any time, the minimum amount of TUSD for withdrawal is $10,000.

TrueUSD's system is set up in a manner that allows you to exchange USD directly with third-party escrow accounts, instead of having to wire money through the TUSD network.

The TrustToken platform ensures the long-term survival of the TUSD stablecoin through regulatory compliance. All escrow account holdings are subjected to regular (monthly) attestations that are published openly.

 is $1.00, with a 24-hour trading volume of roughly $113 million.

on CoinMarketCap, with a live market cap of approximately $1 billion and a 

TUSD's price is designed to stay as close as possible to the U.S. dollar, but slight fluctuations tend to occur. The U.S. dollars that TrueUSD holds are distributed among a few trusted banks, and the stablecoin issuer doesn't have access to this money — a precautionary measure against any form of price manipulation.

). Both of these tokens act similarly, bringing more liquidity to the crypto markets.

The price of TUSD currently stands at approximately $1.00. Based on 

 safety rank as of May 4, 2022, with TUSD’s value 

in 2022. The algorithm-based prediction provided by 

 is based on a steady analysis of TUSD over the last six months, with market capitalization as the dominant ranking factor.

Since TUSD is a stablecoin, it will not gain value/appreciate by itself. However, investors can use TUSD as a 

 against volatility, or vault TUSD (i.e., 

That said, the analysis and insights provided here or on any other site should not be considered investment advice, as cryptocurrencies are

. We suggest you conduct thorough research before making any investment. When you do invest, the best practice is to invest only what you can afford to lose.

Before you purchase TUSD, it’s important to choose a 

 that best suits your needs. A hardware wallet is often considered the safer choice, but might prove inconvenient for active crypto traders. On the other hand, a software wallet is more accessible for regular trading. The caveat is that you’ll have to choose your provider carefully, as not all providers are trustworthy.

When you have your wallet set up and ready, head over to a crypto exchange (e.g., Crypto.com) to acquire TUSD. Create an account on the exchange by filling in your name, email ID and other personal information. Once you’ve successfully registered, you can proceed to either purchase TUSD with fiat money or exchange other crypto assets you hold for it.

If you’re exchanging another crypto for TUSD, the process is quite simple — just select the amount of TUSD you wish to acquire, and choose the crypto you wish to swap it with.

If you want to buy TUSD using fiat money (e.g., U.S. dollars, euros, Brazilian Real), you can do so by paying with one of the following methods:

Using a debit card, credit card or bank transfer is the easiest option for new users who wish to purchase TUSD.

You can buy TUSD directly from other users on the exchange's available 

You can check the exchange to find the available options for third-party payment channels such as 

Thanks to its near-zero risk of liquidity problems, TUSD is a safer investment choice than other tokens that are popular among 

. Theoretically, TrustToken can issue as much TUSD as demanded by users and supply the exact amount of dollars required, making the token attractive to investors of all portfolio sizes.

Stablecoins like TUSD do not appreciate in value, since they’re pegged to real-world assets. Having said that, investors can still invest in TUSD, just as they would in foreign currencies. After all, TUSD is backed by the U.S. dollar, 

, and is likely to keep its #1 spot for the foreseeable future. The bottom line? TUSD is certainly a stablecoin to keep your eyes on.

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TrueUSD (TUSD): A Truly Reliable Stablecoin

Settle outstanding bills and expenses any time with TerraUSD (UST), a stablecoin that never sleeps....and one which could potentially beat inflation.

The world of cryptocurrency is definitely a profitable one. The downside, however, is the high level of risk involved. Due to the volatile price movements of cryptocurrencies such as 

, more investors are now acquiring stablecoins like Terra to diversify their portfolios.

, UST overtook DAI to become the most valuable decentralized stablecoin by 

. In March 2022, the market capitalizations for UST and DAI were $15.3 billion and $9.8 billion, respectively.

The rising popularity of TerraUSD has benefited 

, which oversees the Terra cryptocurrency project. As reported by 

 have invested $150 million to help Terra develop various cryptocurrency projects — e.g., Dogecoin and 

 platform that powers startups' cryptocurrencies and financial apps. Pegged to the U.S. dollar, TerraUSD (UST) is among these cryptocurrencies.

, and Daniel Shin, an entrepreneur-cum-economist, founded Terra (

) in April 2019. The company launched TerraUSD on 

Terra is a stablecoin designed to reduce the volatility of cryptocurrencies like Bitcoin. Terra, TerraUSD's native blockchain, is the brainchild of Terraform Labs. The latter is a subsidiary of 

 that consists of 16 e-commerce companies across East Asia.

A portion of Luna, another digital token and reserve asset, is "burned" as the demand for Terra coins (UST) grows with increasing adoption. As more Luna are burned and diverted to the community pool, this serves as a balancing act which stabilizes the price.

 (UST) is the algorithmic, decentralized stablecoin of Terra. With its price pegged to the U.S. dollar, TerraUSD is the first decentralized stablecoin that’s scalable and yield-bearing.

With TerraUSD, Terra hopes to establish value for Terra's community and offer a scalable alternative to the scaling problems faced by other stablecoins like 

. Apart from promising users higher scalability, TerraUSD also promises higher accuracy in interest rates and interchain use.

Along with meeting the requirements of the DeFi protocols that it uses, TerraUSD’s minting mechanism ensures UST has scalability without compromising security. Users can easily integrate the TerraUSD payment method into 

. Currently, TerraUSD is host to over 90 DeFi apps, such as 

Terra combines a set of straightforward policies and protocols and uses preexisting technology and innovations to ensure that users have a great experience.

Stablecoins are backed by holding the equivalent amount of fiat currency in reserves. As TerraUSD's reserve asset and native cryptocurrency, LUNA is used. Thus, if you want to mint one TerraUSD, only $1 worth of Terra's LUNA token is burned out of the system.

TerraUSD also connects and enables blockchain ecosystems using 

, a bridging protocol. Dropship allows TerraUSD to be integrated into DeFi platforms and DEXs and move between blockchains.

Additionally, it ensures the stability of TerraUSD since LUNA's demand and supply determine TerraUSD's value. Miners stake Terra's native LUNA token using a proof of stake (

TerraUSD leverages existing technology and innovations to offer users the best experience possible. Its key features include the following:

 whose value equals the face value of minted stablecoins. Burning one LUNA reserve asset will issue one TerraUSD. TerraUSD's monetary policy scales almost without limit, which helps 

In the Terra ecosystem, all stablecoins share 

 (stablecoin pegged to Korean Won) with a minimum fee.

TerraUSD allows users to earn passive income with the stable interest rates of the 

Rewards on PoS chains that maintain their stability through commissions and inflation provide additional steady income. This nuance enables a predictable interest rate.

Terra stablecoins connect blockchain ecosystems with the Dropship bridge protocol. With the help of Dropship, TerraUSD integrates with a variety of DeFi and 

 trading platforms and, most importantly, moves assets from one chain to another. 

 of LUNA determine TerraUSD value. The Dropship protocol helps maintain scalability by guaranteeing a stable 

TerraUSD (UST) is a stablecoin built on the Terra blockchain.Burning LUNA tokens creates the UST. The value of UST fluctuates, since it’s driven by the demand-and-supply relationship between the asset and the value of the U.S. dollar. If the value of UST exceeds a dollar, LUNA holders can sell tokens for UST.

As of this writing, TerraUSD has a total supply of over 16 billion, with virtually all of the tokens in circulation. The price of one UST is $1.00, and more than 610 million worth of TerraUSD coins were traded in the past 24 hours.

TerraUSD offers crypto investors an alternative to the extreme volatility of other cryptocurrencies. By moving their investment into UST, traders can reduce their exposure to sudden drops in cryptocurrency prices.

Having UST (instead of the U.S. dollar) also reduces delays in transaction time, because transferring bitcoins into TerraUSD takes less time than transferring dollars.

Another use for UST is DApps. For instance, 

, a platform that permits the minting of fungible “synthetic assets,” tracks prices of real-life assets in the present time and uses UST as a bare asset.

The crypto market’s high volatility frequently causes prices to change drastically within a short period. However, TerraUSD is a stablecoin, so ideally its price should remain constant (at around $1).

To earn a significant profit, you’ll have to deploy massive capital because UST is volatile on a small scale. Therefore, we encourage everyone to watch the latest TerraUSD news before investing in TerraUSD, in order to stay informed about any changes in the market.

It’s easy to invest in cryptocurrencies if you follow a step-by-step approach. Here’s a guide on how to buy UST on the Bybit exchange.

 if you don't already have one. Enter your email address or phone number, and you’re ready to trade once your account is verified.

● Enter the amount you wish to spend and choose USDT as your preferred currency. Trade USDT on the 

● Choose your payment method and service provider. By clicking this link, you’ll be redirected to a secure third-party site where you can complete the 

● Tokens will be credited to your crypto account once you enter your payment information and complete the transaction, generally within 2 to 30 minutes.

Due to its peg with the U.S. dollar, Terra's token holds a market cap of over $15 billion and a circulating supply of a similar amount. Currently, UST is one of the most scalable and interchain-operable stablecoins on the market. (

 As of March 2022, UST is officially the 

The Terra blockchain protocol is an open-source system underpinning algorithmic stablecoins and an expanding network of financial applications. Overall, TerraUSD offers a wide range of features and applications that are perfect for DeFi apps, and meets the surge of demand for a scalable, functional stablecoin.

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Explained: TerraUSD (UST)

Within the cryptoverse, stablecoins should not be overlooked. In particular, the RSR coin with its dual-token setup has a lot of potential. Find out more.

 has paved the way for digital currencies. Since its inception, thousands of cryptocurrencies have entered the market. According to crypto payment gateway 