TRON approves Wintermute to mint, burn USDD stablecoin

abdelaziz Fathi

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

Founded in 2017, Wintermute is a crypto-native market maker focused on creating liquid, transparent markets through hundreds of proprietary trading algorithms across DeFi, CeFi, and OTC markets.

With an average daily trading volume of over $5 billion, Wintermute provides liquidity for hundreds of traded pairs across dozens of centralized and decentralized exchanges. It facilitates OTC trading, provides liquidity and offers market-making services to early-stage projects and exchanges.

This nomination lists Wintermute as an approved reserve contributor, granting them the right to strike and the right to burn USDD. As a member and whitelisted institution, Wintermute will also serve as an advisor and make recommendations to improve the USDD Network. They will attend and be fully engaged in all meetings of Reserve members.

The TRON DAO Reserve said that onboarding a crypto giant like Wintermute helps support the global blockchain industry, prevent panic trading caused by extreme market volatility, and mitigate long-term economic downturns.

As crypto prices nosedived and investors grew concerned about persistently high inflation, the TDR is dedicating resources to preserve the stability of the USDD ecosystem.

“The TRON DAO Reserve (TDR), which governs the stablecoin, acknowledged USDD’s elastic price against the USD amidst market turmoil but is committed to defending the stability of the ecosystem. The TDR is dedicating resources to fostering organic growth and maintaining full transparency. During recent volatile market events, USDD has stayed strong as expected and stabilized organically. The simple facts of over-collateralization of transparent reserves and steady restabilization of the token value came as a natural experiment that shows how much USDD is a force to be reckoned with, especially amid various discussions of industry-wide regulation,” the statement further reads.

Decentralized USD (USDD) is an algorithmic stablecoin on Tron, a multipurpose smart contract blockchain, backed by math and algorithms. The coin is over-collateralized by holding cryptocurrencies and other stablecoins worth $2.3 billion in a standby fund known as the TronDAO reserve.

USDD relies on an elaborate, automated balancing mechanism that involves alternately creating and destroying units of USDD and TRX, the twin token of the stablecoin. The stablecoin now uses a hybrid model in which it’s backed by collateral including Bitcoin, TRX, USDT and USDC reserves.

  • Read this next

    Retail FX

    eToro revives IPO plans after failed $10B SPAC merger

    Israeli social trading network eToro is actively exploring options for a public market listing, according to CEO Yoni Assia in an exclusive interview with CNBC.

    Digital Assets

    Meme Coin Communities Gear Up for the CoinMarketCap Crypto Awards

    CoinMarketCap’s Crypto Awards 2024, the first edition of a new annual event, is captivating the global crypto community. This is especially true for the Meme Coin Of The Year category, where voting has become a battleground for the most passionate and vibrant communities in the crypto space.

    Digital Assets

    Sui Recognized as 2024 Blockchain Solution of the Year at AIBC Eurasia Awards

    The Layer-1 Received the Top Honor at the Eurasia Awards While Experiencing a Period of Unprecedented Growth and Recognition

    Crypto Insider

    Vitalik Buterin, Sandeep Nailwal Lead Decentralized AGI Summit, Address Centralized AI Risks at ETHDenver

    Sentient and Symbolic Capital’s Decentralized AGI Summit will feature leading Decentralized AI authorities like Vitalik Buterin and Sandeep Nailwal.

    Digital Assets

    Aethir Unveils Its First Decentralized AI Node Sale

    Aethir, a leader in decentralized GPU cloud infrastructure, has announced its highly anticipated Node Sale.

    Market News

    Weekly data: Oil and Gold. How they might be affected in the short term?

    This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

    Digital Assets

    BitForex goes offline after mysterious $57 million withdrawal

    BitForex, the Hong Kong-based cryptocurrency exchange, abruptly went offline following a mysterious withdrawal of $57 million from its hot wallets. Blockchain detective ZachXBT was among the first to spotlight this, revealing that BitForex has ceased withdrawal transactions and its team appears to be unresponsive.

    Digital Assets

    Should the largest Bitcoin trade be priced in BTC or USD?

    Three days ago, the Bitcoin network witnessed a staggering transaction of 26,139 BTC, valued at $1.347 billion. This recent transaction contrasts sharply with a notable event from 2011, where 500,000 BTC were moved, then valued at around $1.13 million.

    Market News

    EURUSD volatility abound as more Americans buy houses whilst Europe lags behind

    EURUSD volatility has been on the rise, reflecting contrasting trends between the United States and Europe, particularly in the housing market.

    <