After the eclipse of the Luna and Ust, another stable algorithmic is exploiting the same seigniorage mechanism of the Terra: Usdd (Decentralized Usd) with Trx. Tron is the crypto of controversial CEO Justin Sun. Usdd mint happens by burning Trx. Mint and burn are decentralized because they happen without any authorization. The interest is guaranteed by the Tron DAO Reserve which is made up of 10 billion dollars of stablecoins and volatile assets, useful to keep the peg in case of high volatility by arbitrage. This is similar to the Terra reserve which had bought about $ 10 billion in BTC. The Tron DAO Reserve is made up of investors and companies such as Alameda Research (FTX), Ankr, Amber, Poloniex, Mirana and Multichain.

Usdd maintains the peg via seigniorage as mentioned:
1) When the price of Usdd is less than 1 dollar, the arbitrage function exchanges 1 Usdd for 1 dollar of Trx (if 1 Usdd drops to 0.96, it is exchanged for 1 dollar of Tron and the difference is earned)

2) When the price of Usdd exceeds 1 dollar, arbitrage exchanges 1 dollar of Trx for 1 Usdd (if 1 Usdd is worth 1.04 dollars, the arbitrator spends 1 dollar to obtain 1.04 dollars and earns 0.04 dollars)

The creation of 1 Usdd eliminates an equivalent value in dollars of Trx which are sent to a burn contract. For the moment the reserve has capital that is almost double the capitalization of Usdd (useful for maintaining the peg of the stablecoin). As the supply and therefore the market cap increase, the "collateral" kept in the reserve will consequently increase.
This is one of the pools with Usdt (50 and 50%): Sun.io
On the platform it is possible to exchange Trx for Usdt and Usdd and fill the pool. Farming works by buying Suns which, once blocked in staking, allow you to obtain veSuns that boost performance. The payment takes place both in Usdd (of the Tron DAO Reserve) and in the native Sun token.

The wallet used is Tronlink, I remember that on the Tron blockchain "bandwidth" and "energy" are required to perform the operations, without paying gas fees. These are resources that are activated by having Trx in the wallet and staking it.
The bandwidth allows you to perform transactions on the main Tron network without paying any fees. Having sufficient bandwidth is key when using some dApps where you may want to make several smaller transactions without having to worry about using Trx tokens in the process. Bandwidth allows you to cast votes for "Super Representatives". Energy is a special resource used to process smart contracts (the constraint of what you stake is 72 hours. To do it from the wallet: stake / obtain / power and energy / choose the number of Trx to obtain energy).

What are the risks of Usdd? The protocol uses the same peg maintenance dynamics of Ust and Luna so if the reserve is not appropriate it could have vulnerabilities. In the last few days Usdd has slightly lost the peg but Justin Sun reiterated that in case of need he will buy all the Usdd!

ATTENTION! The article is for informational purposes only! I never recommend what to invest in or what platforms to use. I am not using Usdd because I have already had losses with Ust de-peg!

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