This week, the Tron blockchain has become the third largest network for total value locked (TVL) in decentralized finance (defi) protocols. Interestingly, 48.19% of TVL is held by defi protocol Justlend, an app similar to Anchor protocol in that it offers over 20% APY for USDD deposits. During the rise in Tron’s TVL, the network’s stablecoin, USDD, has been questioned for its similarity to Terra’s UST.
Tron ranks third in terms of total value locked in decentralized finance protocols
On May 30, 2022, Tron successfully became the third largest defi blockchain in terms of total locked value. At the time of writing, Tron’s TVL in Defi is $5.94 billion, slightly lower than Binance Smart Chain (BSC) TVL and Avalanche (AVAX) TVL.
among Terra LUNA and UST RadiationMay 12, 2022 Tron’s TVL is $3.97 billion Blockchain ranks fifth in terms of TVL size. On the day, Tron’s TVL was down 16.16% from May 5, but after the Terra fiasco subsided, Tron ranked third in TVL in Defi.
Tron’s defi TVL is up 45.22% this month and 13.73% over the past seven days. Tron’s TVL is dominated by a defi protocol called Justlend, as 48.19% of the total Tron held in defi is hosted in Jasland application. The total value locked in Justlend is $2.86 billion, which has increased significantly since May 21.
Justlend has added $1.08 billion since May 21, as the agreement’s TVL has increased 58% since then.Also, Jasland is Audited Courtesy of blockchain security company Certik. Similar to Anchor, USDD deposits on Justlend offer 23.55% APY at the time of writing.
Other notable defi apps on Tron in terms of TVL balances include Juststables and Sunswap. Juststables has a TVL balance of $1.41 billion, while the total value locked in Sunswap is less than $1 billion. USDD also managed to become the ninth largest stablecoin among all existing fiat-pegged tokens.
The Tron stablecoin has a market valuation of $603 million today with a global 24-hour trading volume of $179.6 million. Cryptocompare statistics show that USDT and USDC are the first two trading pairs of USDD. Tron’s new algorithmic stablecoins USDD and APY on Justlend are arguably surprisingly similar to what they once offered right of wayTerraform Labs (TFL) and the Anchor team.
Tron’s USDD stablecoin faces numerous critics and skeptics
Some critics have Say “USDD is doomed” and there is a a string of criticisms About the project so similar to UST. Data scientist Bennett Tomlin even said that USDD is not an algorithmic fiat-pegged token concept.
“USDD is not an algorithmic stablecoin as far as I know,” Tomlin Say. “The only interaction TRD members can do is burn TRX Get dollars.I don’t think there is a contract that goes the other way, and no algorithm adjusts either mechanism, except that minting depends on oracle prices TRX. ” Tomlin Add to:
Nominally, the algorithm in Terra is the mechanism to repopulate the AMM in the market module (they lied a bunch about it). This doesn’t seem to have an algorithm at all.
Despite criticism and speculation, Tron has managed to become a top contender in the decentralized finance space. In addition, Tron’s native token, tron (TRX) has managed to climb to the 14th largest market cap in the crypto economy.
This is because although Bitcoin (bitcoin), Ethereum (Ethereum), and many others posting weekly losses for nine straight weeks, Tron managed to avoid most of the market carnage. TRX It has risen 14.7% over the past two weeks and has gained 30.5% against the dollar last month.
In terms of TVL, how do you see Tron becoming the third largest company in decentralized finance today? Let us know what you think about this topic in the comments section below.
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