TRON DAO onboarded one of the largest crypto exchanges Wintermute as its ninth whitelisted member to mint and redeem its algorithmic stablecoin USDD.
“We strive to function as the decentralized crypto reserve while consolidating the value of USDD as the true settlement currency. Welcome more institutions on board!”, the announcement read.
USDD is an algorithmic stablecoin on Tron, that is supposed to keep a one-to-one exchange rate with the U.S. dollar. It relies on an automated balancing mechanism that requires alternately creating and destroying units of USDD and its sister token TRX, the native cryptocurrency of the Tron blockchain.
To elaborate further, when the value of USDD falls below the $1 target, users can burn their USDD to mint TRX, restoring USDD’s price back to the target level.
Apart from that, the USDD stablecoin also maintains the peg with centrally controlled reserves. This reserve comprises of various tokens worth more than USDD’s total value and is held as collateral to prop up the stablecoin in the event of a crisis.
TRON DAO Expands Its Whitelisted Institutions
With respect, to the latest addition, Wintermute is now a part of the selected cahoots that have the exclusive right to swap between USDD and TRX. These parties are referred to as whitelisted institutions.
On being the newest member, David Micley, business development director at Wintermute stated,
“There is a lot of exciting activity going on in the Tron ecosystem which we’re seeing in terms of total value locked [TVL] and projects being built and we’re excited to find ways to get involved and contribute.”
Besides being a well-known crypto market maker on both centralized and decentralized crypto exchanges, Wintermute trades billions of dollars per month that comes with a vast experience in digital assets.
It has over $5 billion in average daily trading volume and is a one-stop shop for OTC trading, providing liquidity for both CEXs and DEXs.
The collaboration between the Reserve and Wintermute will see the latter act as an adviser and “make recommendations to enhance, develop, and supply general aid for the USDD network,” the statement said.