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Justin Sun Unveils USDD 2.0 with 20% APY, Stating “Simply Because We Have Plenty of Money”
In a surprising move, Justin Sun, the founder of TRON blockchain, has announced the launch of USDD 2.0, a decentralized stablecoin that will offer an unprecedented 20% annual percentage yield (APY). The revelation came in the form of a tweet, with Sun stating the obvious reason behind this generous offering: “Simply because we have plenty of money.”
USDD, initially launched on the TRON blockchain in May 2022 as a decentralized stablecoin, previously offered an attractive 30% APY. However, the yield was later reduced amid market constraints. The latest announcement marks a significant reversal, as USDD will now provide a competitive offering amidst a late-stage bull market that may potentially pick up again after Trump takes office on January 20.
Notably, this new stablecoin yield aligns with other notable options available in the market. For instance, Ethena’s USDe earlier offered a similar 20% APY but has since reduced its yield to an impressive 11%. Meanwhile, DAI offers a 12% APY on Spark protocol, and USDC provides a modest 4.1% APY for deposits using Coinbase Wallet.
It is worth noting that the launch of USDD 2.0 with its 20% yield brings into question the lessons learned from previous instances of high-yield offerings. In 2022, Anchor Protocol’s stablecoin UST collapsed and lost its peg to the dollar, resulting in a loss of $40 billion.
The market cap for USDD currently stands at $746 million, primarily trading on decentralized exchanges within the TRON ecosystem as well as centralized platforms including KuCoin, Bybit, and Gate.io, according to CoinGecko data. The dominance of Tether (USDT) and USD Coin (USDC) in the stablecoin market remains unchallenged, boasting market caps of $137 billion and $45 billion, respectively.
The significance of this announcement lies in its potential impact on the decentralized finance (DeFi) landscape. With an array of high-yield offerings now available, investors may be enticed to explore the TRON blockchain and its associated stablecoin ecosystem.
Source: cryptobriefing.com
