USDD - US Dollar Disaster Waiting To Happen
Oh goodie-goodie gumdrops and juicy-juicy mangos, fresh off the blow-up up of the Luna/UST/Anchor protocol and the pathetic attempt to make them whole with an airdrop of a forked LUNAC, we've seen that while peoples appetite for stupidity has not reduced one bit, it's only migrated.
There were a few brainless buffoons buying Luna and Luna Classic thinking that they are getting something on the cheap, thinking if something goes down 99% it can't go down a further 100% and they learned that lesson the hard way and good riddance to bad rubbish.
I've already said this could be the time for TRON to finally kill itself and boy are they making a good go of it.
USDD on the rise
In the space of a month USDD A unbacked stablecoin, I guess I shouldn't say unbacked, I mean backing something with hopes and dreams and an army of retards is still backing right? Anyway, this make-believe USD has gone from 0 market cap 2 months ago to over 700 million and is fast moving into the billion.
The pace at which this thing is growing should be of concern to anyone who holds this token, because as fast as something goes up, it sure as shit can fall even faster.
USDD Bullshit backing
USDD claims that to mint their 700 million USDD 8,718,566,088 had to be burned, so that's what backed the minting of the USDD and proof of reserves.
While they have $ 718,238,709 in backing on 3rd party assets in case something goes wrong, and claiming that it makes it 200% backing which isn't exaclty true.
- 14,040.6BTC $ 423,314,377 worth
- 140,000,000 USDT - $ 140,000,000 worth
- 1,906,000,176 TRX - $ 140,000,000 worth
Forgive me but I don't understand why a "decentralized" stablecoin requires a centralized DAO fund with third party assets to act as a buffer in case the algo breaks, lol, the amount of mental gymnastics to call this decentralized is beyond me.
Also one of the primary assets you're using to back it, is a centralized stablecoin lol
You see the thing is minting a stablecoin by burning an amount of that coin doesn't mean jack, when the coin you're backing it with doesn't have the liquidity to match, if tron loses 10% of its value as price support for it falls, the whole thing can quickly unravel draining the USDT and bitcoin reserves and you can still get a death spiral.
Adding additional inflation risk
USDD is also planning to expand to support multiple chains after launching on TRON, BNB Chain, and Ethereum and for every chain, it supports it now carries oracle, smart contract, centralised custody risk as exchanges hold USDD and rehypothecation risk, so every bridge is an attack vector and as USDD is swapped between chains it.
As we saw with Solana and the wormhole protocol, so I look forward to which attack vector blows this thing to shit.
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Posted Using LeoFinance Beta
hahaha love your writing and not holding back any punches!
I started earning about Luna when it was at 30 billion, so it still ran up another 25% before it crashed so there was a time I was called a nutter, so now I'm starting even earlier with this one
go get your 30% APR lol, see how it works out for you
It's already messy and they didn't even launch their 30% APY Staking bulshit yet. When they release it, the masses will follow to get that fabulous and "safe" return. 🥴
Then it will probably follow Luna into the depths of hell.
I heard you can get up to 40% if you do it through an exchange lol, this is so dodge I can't see how this doesn't end badly its only a matter of time
It’s the
peoplesheeples!!!! They feed the virus that USDD is. This should be a major concern to everyone in crypto. We need to treat USDD like a virus that it is. Because this crash will affect everyone.I just can’t deal 🤦♀️ This shitshow needs to go away
Posted Using LeoFinance Beta
Lol it will and the shitshows you support will join them too! Simping for shitcoins with another name doesn't make it any different.
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