Tron Is The Third-Biggest Blockchain In DeFi Thanks To Its Stablecoin

Tron is the third-biggest blockchain In DEFI now thanks to its algorithmic stablecoin, as the DEFI activity saw a sharp spike after the launch, promising a 20% per year return so let’s read more today in our latest Tron news.

Tron is a cryptocurrency led by Justin Sun launched in 2018 and now, Tron is the third-biggest blockchain in terms of total value locked. As per DeFi Llama, the total value locked on Tron’s 9 nine different apps stands at $5.9 billion or up by 44% over the past month. The only two chains ahead are BNB chain and the industry leader Ethereum so Binance Smart Chian’s TVL stands at $10.8 billion and ETH hosts over $93 billion.

Tron is also the only blockchain to enjoy continued growth on all major networks. Polygon, Solana, Avalanche, Etheruem, BNB Chain, and Fantom all shed double-digits over the past month. Tron’s bullish activity was mainly driven by the launch of the new algorithmic stablecoin which promises double-digit returns as a scheme not dissimilar to the Terra stablecoin which recently collapsed. Unlike Tether’s USDT or Circle’s USDC, USDD is not backed by anything and it is governed by smart contract algorithms while the algorithm governing the stablecoin’s dollar peg is an arbitrage trade between the USDD and the TRX Tron network native token.

The investors can swap 1 USDD for $1 worth of TRX so if the price of USDD falls below the dollar peg, the investors can buy discounted USDD and Swap it for TRX whcih will pocket the difference by selling the TRX tokens on the market. Like Terra, USDD promises investors more than 20% per year in returns on other Tron-based projects. With the high rates, most of the platforms enjoy a hefty uptick in activity. JustLEnd’s TVL increased from $1.79 billion to $2.86 billion in less than a month. Other protocols on Tron like SunSwap and JustStables, also saw an increase in total value locked.

Other protocols on Tron like SunSwap, JustStables and Sun.io also saw an increase in tVL in the past month so the TVL on JustStables increased 15% and Sun.io’s TVL increased by 140%. it’s nowhere near the size of the Terra UST but the USDD market cap is growing fast. USDD now has a total supply of 601 million tokens with a market cap above $602 million and this figure is up from the $90 million that was recorded on May 5.