Tron blockchain this week became the third largest network in terms of total closed value (TVL) in decentralized funding protocols (defi).
Interestingly, 48.19% of TVL is owned by the Justlend Definition Protocol, an application similar to the Anchor Protocol where it provides more than 20% APY for USDD deposits. Amidst the high TVL of Tron.
Skeptics have encountered the network's USDD stable currency about the similarities between USDD and Terra's UST.
Tron occupies the third largest position in terms of total submerged value in decentralized funding protocols
On May 30, 2022, Tron managed to become the third largest blockchain in terms of total closed value. At the time of writing, Tron's TVL was valued at $5.94 billion, slightly less than the Binance Smart (BSC) TVL series and above the Avax (AVAX) TVL.
- In the aftermath of Terra LUNA and UST on May 12, 2022
- Tron's TVL was valued at $3.97 billion and blockchain ranked fifth in size by chains.
- On that day, Tron's TVL value fell 16.16% from 5 May
- but after Terra's failure subsided
- Tron finished third in terms of TVL in the challenge.
On May 30, 2022, the total value is locked on the Tron blockchain network.This month, Tron's TVL value increased 45.22% and over the past seven days, rising 13.73%.
Tron's TVL is dominated by a specific protocol called Justlend. Where 48.19% of the total Tron booked in the challenge is hosted on the Justlend app.
Justlend's total value is $2.86 billion closed and has increased significantly since May 21.
- $1.08 billion has been added to Justlend since May 21, with the Protocol's TVL increasing by 58% since then.
- Furthermore, Justlend was audited by Certik blockchain security company.
- Similar to Anchor, USD deposits are offered on Justlend 23.55% APY at the time of writing.
Other notable challenge applications on Tron, in terms of TVL balances, include Justables and Sunswap. Justables has a TVL balance of $ 1.41 billion and Sunswap has just under 1 billion in total value locked.
USDD :
- has also managed to become
- the ninth largest stable currency out of all
- the cryptocurrencies tied into existence.
The market :
value of today's stable Tron currency is US $603 million and has seen US $179.6 million in 24-hour global trade volume. Statistics from Cryptocompare indicate that USDT and USDC are the biggest USDD trading doubles.
The new Tron algorithm stable currency in US dollars and APY on Justlend is arguably very similar to the products previously presented by Do Kwon, Terraform Labs (TFL) and the Anchor team.
The USDD stable currency of Tron faces many critics and skeptics
- A number of critics said that "USDD is doomed," and there is a series of criticism about the project being very similar to UST.
- Data scientist Bennett Tomlin went so far as to say that USDD is not a symbolic concept associated with algorithms.
- "As far as I can tell," Tomlin stated, "USDD is not a reliable currency of account." "The only way TRD members may engage is to burn TRX for USDD.
- I don't see any contract going the other way, and there's no algorithm to adjust either mechanism.
except that the mint depends on the oracle price of TRX ". Tomlin added
Like nominally, Terra's algorithm was the mechanism that refilled the AMM module in the market unit (they lied about it). There doesn't appear to be any sort of algorithm here.
Despite criticism and speculation, you can see that you are the number one competitor in the decentralized finance world. Moreover, Tron's original Tron code was able to climb to 14th place in terms of the largest cryptocurrency market cap in the cryptocurrency economy.