TRON rolls out its own version of MakerDAO

In January of this year, TRON founder and CEO, Justin Sun, announced TRON's own upcoming decentralized stablecoin. His announcement back then revealed that TRON plans to use TRX and BTT for backing the coin.

Now, Justin Sun released a new announcement, revealing that the MakerDAO-like system is ready. The new stablecoin system, Djed, was just unveiled this Saturday.

The project's whitepaper reveals that the new system offers a coin called USDJ, and it is USD-pegged. Meanwhile, it is backed by collateral assets. The white paper also states that users can generate the new cryptocurrency via smart contracts on TRON's network.

Simply put, anyone can join the network, pledge a certain amount of TRX, and generate the appropriate amount of USDJ in return. The coins will enter into free circulation just like any other digital currency.

The new system shares many similarities with MakerDAO

The whitepaper also says: "It is pegged to the US dollar through Collateralized Debt Positions (CDPs), and also has autonomous feedback mechanisms.”

While Sun did state that both, TRX and BTT will serve for backing the new stablecoin, it seems that this might not be the case. BTT is currently not mentioned within the system, at all.

However, the similarities between Djed and MakerDAO continue to emerge. Another aspect that the two systems share is a stability fee. There is also the community governance, a liquidation mechanism, and alike.

Djed's whitepaper further adds certain expectations. One of them is that community governance will bring the coin's advantages into full play. The project expects to see the stablecoin applied widely on the TRON network. In fact, it says that: "We believe that USDJ will become an integral part of the TRON DeFi [decentralized finance] ecosystem."