Traders can now earn rewards for depositing the network’s recently created USDD, an algorithmic stablecoin designed to work like Terra’s all-but-defunct UST, to Tron-based lending protocol JustLend to Justin Sun, developer of the Tron blockchain.
They will receive yield in both USDD and the JUST stablecoin if they deposit USDD.
JustLend is a Tron-based lending mechanism similar to Ethereum’s Compound. However, whereas Compound currently offers APY rates in the low single digits, JustLend is advertising rates as high as 30% — though JUST also mentioned 70% earnings, and the pace is changing throughout the day. (A Decrypt request for comment on how the yield works have yet to receive a response from Tron personnel.) That’s around 10 to 20% more than what Terra’s lending protocol, Anchor, offered before a liquidity problem caused a bank run, which slowed the network.
The approach by Tron is directly out of the Terra playbook—at least the one prepared before the collapse of Terra’s native token LUNA and the UST stablecoin.
Sun said last month that Tron DAO, the user-controlled organisation in charge of network governance, would begin releasing a decentralised stablecoin backed by TRX.