USDD, the decentralized stablecoin launched by Justin Sun, founder of TRON DAO, has introduced the STRX function today April 15, 2025. With this initiative, the users can use STRX tokens as collateral to borrow USDD stablecoin. This allows users to access stablecoin liquidity without having to sell the STRX.
STRX is similar to staked TRX (STETH), which provides staking income within the Tron network with an annualized interest rate of 9-15% as per the post on social media platform X by Justin Sun.
With this initiative, users have an appealing option to increase their returns while maintaining exposure to the Tron ecosystem.
How Does the STRX Function Work?
Users can hold STRX tokens and pledge them to borrow USDD stablecoins. Here it becomes beneficial for the TRX holders who wish to utilize stablecoin without having to sell their TRX assets. In this way the it enables users leverage their existing holdings to access liquidity while maintaining their TRX positions.
Benefits of TRX Holders
Since the users can easily borrow USDD without having to liquidate their TRX assets, this allows the users to maintain their exposure to TRX price increases while using USDD for activities like trading, hedging, or for other financial purposes.
Moreover, with this token, the user can also diversify its portfolio by accessing stablecoin markets without having to let go of their long-term TRX investments.
Justin Sun’s Vision
With this new function of STRX, it will let users borrow USDD and give them a little more flexibility in managing their assets on the Tron platform. With this initiative it can be seen that Justin Sun is committed towards expanding financial freedom through decentralized stablecoins like USDD.
Market Implications
This initiative of introducing STRX function could lead to an increased adoption of USDD and TRX, as users seek to capitalize on the benefits of staking and borrowing systems. With this, there is a possibility of promoting an ecosystem where users can explore various strategies for them to maximise their returns by using combinations of staking, borrowing and trading.
Also Read: Binance Briefly Down Due to AWS Outage, Recovers Quickly
