By depositing USDC-ERC20 into Ethereum, Tron creates an equivalent amount in the new currency.
The TRON-Peg USD Coin is audited by the ChainSecurity firm.
Tron DAO announced the launch of TRON-Peg USD Coin on the Tron blockchain, opening “new doors for cross-chain transactions and expanding our stablecoin ecosystem.”
As reported by the DAO in a x thread, This new token allows users to make seamless transfers of USD Coin (USDC) between the Ethereum and Tron networks, facilitating interoperability between these two important blockchains.
The mechanics behind TRON-Peg USD Coin are simple: by depositing USDC-ERC20 into Ethereum, The Tron system automatically creates an equivalent amount in TRON-Peg USD Coin on the Tron network. This mechanism acts as a bridge, allowing value movements between the two chains without the need for external intermediaries.
This is not the first time USDC has been available on the Tron network. Previously, users could use USDC directly on Tron until Circle, the company behind USDC, decided to discontinue this support. The reason, as CriptoNoticias reported in February of this year, lay in a “business approach that involved commercial organization, regulatory compliance and other functions throughout our company.”
Following this announcement, Binance, the world’s largest cryptocurrency exchange, suspended support for USDC on the Tron network, as this media also reported.
Now, with TRON-Peg USD Coin, users can once again use USDC on the Tron network, albeit in a pegged version that mirrors the stablecoin’s value on Ethereum. TRON DAO ensures that this new implementation will allow users to “enjoy free cross-chain transactions with full transparency. Reserves always exceed the total supply, ensuring a 1:1 USDC swap on Ethereum.”
The security of TRON-Peg USD Coin has been supported by an audit by ChainSecurity, a company specialized in verifying the integrity of smart contracts. According to TRON DAO, “we are committed to providing a secure and reliable stablecoin experience,” they said to try to ensure user confidence in transactions made with this new currency.
The decentralized autonomous organization behind Tron also highlighted that since that network represents more than a third of all stablecoins, TRON-Peg USD Coin reinforces its mission: “secure and seamless transactions that empower users around the world.” .
With this innovation, USDC regains its place in the Tron ecosystem, albeit in a non-native way; Tron expands too expands possibilities for usersoffering a solution that could be adopted by other projects interested in interoperability, an aspect that, in the opinion of Justin Sunthe founder of Tron, “is the heart of the future of the industry.”
The excess of reserves over Tron supply potentially increases the security and stability of the liquidity of the USDC peg-token on Tron; However, it must be taken into account that tokens anchored to the value of a stablecoin may suffer liquidity problems due to low demand, making it difficult to buy and sell them in large quantities. On the other hand, “stuck” tokens may have somewhat higher counterparty risk than those natively issued by Circle or Tether; TRON-Peg USD Coin are issued by the Tron DAO, the decentralized autonomous organization on the chain.
This article was created using artificial intelligence and edited by a human Editor.