Explain USDD and Smart Allocator|The most transparent stablecoin strategy
Recently, the protocol update of USDD, a new section called Smart Allocator has been launched, and after a few days, I found that many group members actually don't know about this thing, and have been asking me what it is, is it safe, does it have an impact on PSM, and will it lose money? So I'm going to write another article today to explain some basic common sense about it to you.
1/ Will Smart Allocator have an impact on PSM liquidity?
There will be no impact. I found a chart for you to take a look at, the first chart is the liquidity of USDD to USDT in PSM two days ago, and the second chart is now, you can clearly see the changes in the chart.
The reason is that PSM liquidity will be flexibly adjusted according to the TVL of USDD and real-time conditions, so there is no need to worry at all. Therefore, there are no problems with the price of USDD, including the fact that USDD has never been unanchored for more than 6 hours since its inception.
2/ Is Smart Allocator risky for USDD users?
No risk. Because the agreement of Smart Allocator clearly states that the user's principal will not have any impact, and in the event of systemic risk, the loss will be borne by the agreement.
The reason is that USDD's Smart Allocator is a completely transparent on-chain high-liquidity and low-risk strategy, ensuring security is the first, and compared with stablecoins on the same track, USDD's strategy is the safest and most transparent, and you can check the whereabouts of on-chain reserves on the official website at any time.
3/ Does Smart Allocator have any impact on USDD users?
No impact. In fact, as a stablecoin, it is very normal and common to have an independent strategy, and even many stablecoin strategies are not public, so users cannot trace the real-time dynamics of the reserve.
However, USDD's strategy is in fact completely open and transparent on the chain and official website, in line with the principle of 100% transparency and openness to users, the whereabouts and amounts of funds and addresses are fully publicized, and they can be queried at any time, so in fact, there is no impact, and it can only be said to be more transparent.
In fact, USDD does not need to be online at all to do similar things, and even the PSM liquidity on the official website does not need to be tracked in real time, after all, it is 1:1, and only need to ensure the exchange liquidity, and this is done entirely to give users a more transparent, safe and secure experience, which can also be seen from this point, USDD's determination to the safety of user assets and be supervised.
@justinsuntron @usddio #TRONEcoStar
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