Tron, one of the largest blockchain-based operating systems in the world, has launched its Stablecoin system called Djed. The Stablecoin system is similar to MakerDAO, which is a decentralized organization that offers stability in the sphere of cryptocurrencies. The news was released by CEO and Founder Justin Sun to via Twitter Saturday.
However, his Twitter followers had a clue, as Sun came up with the idea in January. He said: "The TRON community will launch a new decentralized Stablecoin backed by TRX and VTT." He even went ahead to ask his followers for the best name to give Stablecoin.
– Justin Sun (@justinsuntron) January 16, 2020
True to his words, two months later, he returned to the same social media platform on March 28 to make the announcement. He uploaded a fragment of the platform, which by its looks seems very easy to use. However, the BTT token is not mentioned in the current Djed system.
According to the whitepaper, due to the high volatility of TRON assets, USDJ Stablecoin will come to offer a much more stable crypto environment. Quoting the document, “USDJ Stablecoin is a USD-linked cryptocurrency backed by collateral assets. We believe that USDJ will become an integral part of the TRON Defi ecosystem. ”
To offer better services in the industry, the Djed Stablecoin system will have a cost since there will be stability fees, in addition, there will be community government and also settlement mechanisms.
Djed price stability mechanism
According to the whitepaper, Stablecoin's initial price target will be 1.0 per USD. Furthermore, the USDJ target price fulfills two main functions. One is to calculate the CDP debt / collateral ratio, and two is to determine the value of collateral assets that USDJ holders will receive at the time of global settlement.
Therefore, in the event of market volatility, a target rate feedback mechanism (TRFM) would be initiated to maintain the same denomination as the USDJ. The target rate is used to determine the change in the target price.
Under the same mechanism, once the USDJ falls below the target price, it in turn will cause the target rate to rise. This, therefore, will make it more expensive to generate USDJs with CPDs. As the target rate increases, it will increase along with the capital gains from holding the USDJ, increasing overall demand for the digital asset.