The Tron team has learned lessons from the collapse of the Terra ecosystem, so the algorithmic USD stablecoin will not repeat the fate of its predecessor, said the founder of the project Justin Sun.
"Despite LFG's best efforts, most of UST's collateral consisted of LUNA, a very volatile asset, and less than 15% of the stablecoins were backed by bitcoin. We have witnessed the consequences of this mistake over the past two weeks," he wrote.
Sun added that USD will be fully backed by a combination of stable and volatile assets. Initially, the Tron DAO Reserve reserve fund included stablecoins like USD and USD, as well as bitcoin and TRX.
