Tron Rolls Out Its Own Stablecoin System Similar to MakerDAO

The Tron Foundation has introduced its own stablecoin system similar to MakerDAO. The new system, called Djed, was announced by Tron founder Justin Sun in a Twitter post from March 28. The project was disclosed for the first time in January.

At the time, Sun stated that the TRON community would roll out a new decentralized stablecoin backed by Tron (TRX) and BitTorrent (BTT) tokens. (The Tron Foundation bought BitTorrent back in 2018).

The Djed’s whitepaper describes the new stablecoin supported by Tron and named USDJ, as a USD-tethered coin backed by collateral assets, by stating the following:

“USDJ is a new currency generated through decentralized smart contracts on the TRON network. Anyone can pledge TRX as collateral to generate USDJ. USDJ enters into free circulation as any other cryptocurrency does once generated. It is pegged to the US dollar through Collateralized Debt Positions (CDPs), and also has autonomous feedback mechanisms.”

It is interesting to note, that now there is no reference to the BTT token circulating in the Djed system.

Djed functions in a way similar to MakerDAO’s stablecoin system. It relies on stability fee, community governance, and liquidation mechanism, among other features.

“We believe that under successful community governance, USDJ will bring into full play its advantages as a stablecoin and be widely applied across the TRON network,” Djed team asserted. The developers went on to say:

“We believe that USDJ will become an integral part of the TRON DeFi [decentralized finance] ecosystem.”