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.