Tron launches its own MakerDAO-like stablecoin system

The Tron Foundation has launched its own MakerDAO-like stablecoin system called “Djed.”

The new system was unveiled by Tron founder Justin Sun on Twitter on Saturday. Sun initially revealed the project in January.

At the time, he said the TRON community would launch a new decentralized stablecoin backed by Tron (TRX) and BitTorrent (BTT) tokens. (The Tron Foundation acquired BitTorrent in 2018).

The new stablecoin is called “USDJ,” a USD-pegged coin backed by collateral assets, according to Djed’s whitepaper.

“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,” per the whitepaper.

Notably, the BTT token is currently not mentioned in the Djed system. 

Similar to MakerDAO’s stablecoin system, Djed has 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,” said Djed, adding:

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