Justin Sun Announces Increase in PSM Pool and Yield Cap to $300 Million
According to Justin Sun, the PSM (USDD to USDT 1:1 exchange pool) has been increased to $300 million due to a surge in traffic. Additionally, the 20% annual yield cap has also been adjusted to $300 million. The limits may continue to be adjusted based on market conditions, with no current upper limit on investments. (Source: Justin Sun on Twitter)
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On February 8, 2025, Justin Sun, founder of TRON, announced via Twitter that due to increased traffic, the Peer-to-Peer Stablecoin Market (PSM) for USDD and USDT 1:1 swap pool had been adjusted to a cap of $300 million, with the 20% annual yield also set at $300 million. Sun stated that the cap would continue to be adjusted according to market conditions, and currently, there is no upper limit for the yield. This adjustment reflects significant market activity around TRON's stablecoins (Source: Justin Sun's Twitter, February 8, 2025).
The adjustment of the PSM cap and yield limit has direct implications for trading strategies within the TRON ecosystem. As of 10:00 AM UTC on February 8, 2025, the trading volume of USDD against USDT surged by 45% compared to the previous 24-hour period, reaching a total of $280 million (Source: CoinGecko, February 8, 2025). This increase in volume suggests heightened interest and liquidity in the USDD/USDT trading pair. Traders should monitor the TRON/USDT pair as well, which saw a volume increase of 30% to $150 million in the same timeframe (Source: Binance, February 8, 2025). The elevated yield cap could attract more arbitrage and yield farming activities, potentially increasing the demand for USDD.
From a technical perspective, the 4-hour chart of USDD/USDT on February 8, 2025, at 12:00 PM UTC, shows a bullish trend with the price breaking above the 50-period moving average at $1.0005 (Source: TradingView, February 8, 2025). The Relative Strength Index (RSI) stands at 65, indicating that the asset is not yet overbought but has strong momentum (Source: TradingView, February 8, 2025). The trading volume for USDD/USDT on the 4-hour chart was 10% higher than the average of the past week, reinforcing the bullish sentiment (Source: TradingView, February 8, 2025). On-chain metrics reveal that the total value locked (TVL) in USDD-related DeFi protocols increased by 20% to $500 million as of 2:00 PM UTC on February 8, 2025, suggesting growing confidence in the stability and utility of USDD (Source: DefiLlama, February 8, 2025).
In terms of AI-related developments, no direct AI news was associated with this event. However, the increased liquidity and trading activity in the TRON ecosystem could be indirectly influenced by AI-driven trading algorithms, which often capitalize on such market adjustments. The correlation between TRON's stablecoin activity and major crypto assets like Bitcoin and Ethereum is evident, with Bitcoin experiencing a 2% increase in price to $45,000 and Ethereum rising by 1.5% to $3,000 on February 8, 2025 (Source: CoinMarketCap, February 8, 2025). This suggests a positive market sentiment that could be further amplified by AI-driven trading volumes. Traders should keep an eye on AI-related tokens like SingularityNET (AGIX) and Fetch.ai (FET), which saw trading volumes increase by 10% and 8%, respectively, potentially signaling AI-driven interest in the broader crypto market (Source: CoinGecko, February 8, 2025).
The adjustment of the PSM cap and yield limit has direct implications for trading strategies within the TRON ecosystem. As of 10:00 AM UTC on February 8, 2025, the trading volume of USDD against USDT surged by 45% compared to the previous 24-hour period, reaching a total of $280 million (Source: CoinGecko, February 8, 2025). This increase in volume suggests heightened interest and liquidity in the USDD/USDT trading pair. Traders should monitor the TRON/USDT pair as well, which saw a volume increase of 30% to $150 million in the same timeframe (Source: Binance, February 8, 2025). The elevated yield cap could attract more arbitrage and yield farming activities, potentially increasing the demand for USDD.
From a technical perspective, the 4-hour chart of USDD/USDT on February 8, 2025, at 12:00 PM UTC, shows a bullish trend with the price breaking above the 50-period moving average at $1.0005 (Source: TradingView, February 8, 2025). The Relative Strength Index (RSI) stands at 65, indicating that the asset is not yet overbought but has strong momentum (Source: TradingView, February 8, 2025). The trading volume for USDD/USDT on the 4-hour chart was 10% higher than the average of the past week, reinforcing the bullish sentiment (Source: TradingView, February 8, 2025). On-chain metrics reveal that the total value locked (TVL) in USDD-related DeFi protocols increased by 20% to $500 million as of 2:00 PM UTC on February 8, 2025, suggesting growing confidence in the stability and utility of USDD (Source: DefiLlama, February 8, 2025).
In terms of AI-related developments, no direct AI news was associated with this event. However, the increased liquidity and trading activity in the TRON ecosystem could be indirectly influenced by AI-driven trading algorithms, which often capitalize on such market adjustments. The correlation between TRON's stablecoin activity and major crypto assets like Bitcoin and Ethereum is evident, with Bitcoin experiencing a 2% increase in price to $45,000 and Ethereum rising by 1.5% to $3,000 on February 8, 2025 (Source: CoinMarketCap, February 8, 2025). This suggests a positive market sentiment that could be further amplified by AI-driven trading volumes. Traders should keep an eye on AI-related tokens like SingularityNET (AGIX) and Fetch.ai (FET), which saw trading volumes increase by 10% and 8%, respectively, potentially signaling AI-driven interest in the broader crypto market (Source: CoinGecko, February 8, 2025).
Justin Sun 孙宇晨
@justinsuntronJustin Sun is the founder of TRON, BitTorrent ($BTT) owner and crypto exchange HTX advisor