This week, the Tron blockchain has become the third largest network in terms of total value lock (TVL) for decentralized finance (defi) protocols. Interestingly, 48.19% of TVL is retained by the decentralized protocol Justlend. This is an application similar to the anchor protocol as it provides more than 20% APY for USDD deposits. As Tron’s TVL rises, Network’s Stablecoin USDD is skeptical that USDD is similar to Terra’s UST.
Tron occupies the third largest position in terms of totals locked in decentralized finance protocols.
On May 30, 2022, Tron became the third largest decentralized blockchain in terms of locked totals. As of this writing, Tron’s decentralized TVL is $ 5.94 billion, just below the Binance Smart Chain (BSC) TVL and just above the Avalanche (AVAX) TVL.
In the fallout of Terra LUNA and UST, on May 12, 2022, Tron’s TVL was $ 3.97 billion and the blockchain was ranked 5th in TVL size per chain. That day, Tron’s TVL was 16.16% lower than May 5, but after Terra’s blunder subsided, Tron claimed a third position in TVL at Defy.
This month, Tron’s decentralized TVL increased by 45.22%, up 13.73% in the last 7 days. Tron’s TVL is dominated by a decentralized protocol called Justlend. This is because 48.19% of the Tron aggregates held in defi are hosted by the Justlend application. Justlend has locked a total value of $ 2.86 billion, a significant increase since May 21st.
The protocol’s TVL has increased by 58%, adding $ 1.08 billion to Justlend since May 21st. In addition, Justlend was audited by blockchain security company Certik. Like Anchor, Justlend’s USDD deposits offer a 23.55% APY at the time of writing.
From a TVL balance perspective, Tron’s other notable decentralized applications include Just stables and Sunswap. Juststables has a TVL balance of $ 1.41 billion and Sunswap totals just under $ 1 billion. USDD could also be the ninth largest stablecoin of all Fiat peg tokens in existence.
Today’s Tron Stablecoin has a market valuation of $ 603 million and a 24-hour global trading volume of $ 179.6 million. According to Cryptocompare statistics, USDT and USDC are the top two trading pairs in USDD. Tron’s new algorithms Stablecoin USDD and Justlend’s APY are arguably eerily similar to the products once offered by the Do Kwon, Terraform Labs (TFL), and Anchor teams.
Tron’s USDD Tablecoin faces many critics and skeptics
Many critics Said “USDD is destined to fail” and Ectenia of criticism About the project being very similar to UST. Data scientist Bennett Tomlin even says that USDD is not an algorithmic flat peg token concept.
“As far as I know, USDD is not an algorithm stablecoin,” Tomlin said. Said.. “The only interaction TRD members can do is to burn TRX and get USDD. There are no contracts going in any other direction, except that Mentha depends on the TRX’s oracle price, and both mechanisms are coordinated. There is no algorithm. “Tomlin Added:
Nominally, Terra’s algorithm was a mechanism to replenish the market module’s AMM (they lied a lot about this). It seems that there is no algorithm at all.
Despite criticism and speculation, Tron has become a top candidate in the world of decentralized finance. In addition, Tron’s native token tron (TRX) has risen to 14th place with the largest market capitalization in the crypto economy.
This is because Bitcoin (BTC), Ethereum (ETH), and many others have recorded weekly losses for nine consecutive weeks, while Tron has managed to stop most of the market genocide. TRX has risen 14.7% in the last two weeks and 30.5% against the US dollar last month.
From a TVL perspective, what do you think about Tron becoming the third largest decentralized finance today? Please let us know what you think about this subject in the comments section below.
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