Justin Solar has excitedly trumpeted the launch of the brand new model of his algorithmic stablecoin, USDD, taking to X to proclaim that it’s “about to launch with a 20% APY.” Nonetheless, he insists that folks cease asking the place the yield comes from.
Surprisingly, it’s laborious to find out with any quantity of precision how USDD 2.0 will differ from the present implementation.
The newest model of the coin’s whitepaper dates to December 2022 — greater than two years in the past. It posits that its stability will come from the challenge serving within the position “of a decentralized central bank in the industry.”
Much more unusually, there are not any latest governance votes for this challenge, with the final relationship to Could of 2023.
The audit stories for the challenge haven’t been lately up to date both, relationship to 2022. Humorously, 2022 can be the final time that any new USDD was issued.
Even the USDD Discord has no particulars about what USDD 2.0 is.
Nonetheless, there’s a “Beta” USDD 2.0 web site that seems to trace that it’ll eradicate lots of the algorithmic options of USDD, as an alternative making it a JUST DAO stablecoin just like the JUST stablecoin (USDJ).
That is based mostly on a line on the web site that notes that “JUST DAO offers a lending protocol that enables users to mint over-collateralized stablecoins (USDD) by depositing Tron chain assets.”
It additionally exhibits three vaults that seem to correspond to Wrapped Tron, Tether, and CryptoFlow.
Surprisingly, JustLend DAO doesn’t have any governance dialogue of this launch of USDD 2.0. Nor does the JUST Steady Governance portal have any proposals associated to USDD 2.0.
Nonetheless, for these nonetheless looking for to know the protocol, there’s a documentation web site that’s presently linked from the beta web site. Particulars are nonetheless scarce, but it surely appears to explain a system that mimics JUST Steady and USDJ (themselves derivatives of Maker).
Solar appears intent on doubling down on the JUST Steady mannequin, even supposing USDJ hasn’t seen substantial adoption, with a complete market capitalization of roughly $23 million. Twenty million of those tokens are presently in TSF2rqLdrrZG7PZkDxtvu6B2PTpofidMAX, an deal with included within the reserves for USDD.
Solar has moved to allay any issues about the place the challenge’s yield comes from by insisting that there gained’t be any points “simply because we have plenty of money.”