Stablecoins, to put it simply, are the "cornerstone" of the crypto world — no matter how wild the market gets, they need to stay stable. Recently, I noticed a pretty interesting project on the TRON chain that combines algorithmic and reserve mechanisms to create some new innovations.

Let’s start with how it "stays stable." Behind it is a reserve called TRON DAO Reserve, filled with hard assets like BTC, TRX, USDT, and more. The total value exceeds the circulating supply of tokens by over 30% (that is, overcollateralized at 130%+). What does this mean? Even if the market suddenly crashes, the smart contracts can automatically adjust the supply to bring the price back up. Data shows that since launching in 2022, the price has never fluctuated more than 0.5%, making it quite stable.

How does it work in practice? There are quite a few scenarios:

- Used as collateral in DeFi lending, with slippage so low it’s negligible
- Pay directly when buying NFTs, no need to swap back and forth
- Cross-border transfers are even better — TRON network can handle over 2000 transactions per second with almost zero fees, ten times faster than traditional banks

The advantage of decentralized design is that you don’t have to worry about any institution suddenly freezing accounts or misappropriating reserves. The contract code is open and transparent, and reserve assets can be checked in real-time. This "trust through code, not people" approach is what the crypto world should be about.

Of course, no system is perfect. Under extreme market conditions, whether the algorithm can withstand the pressure, and whether the reserve assets are sufficiently diversified—all these need time to verify. But at least for now, this combination of "algorithm + reserves" has delivered a pretty good performance in the stablecoin arena.