TRON launches platform similar to Ethereum-based MakerDAO

  • TRON’s CEO launched the Djed platform with a system that seems to have been copied from the Ethereum-based platform MakerDAO.
  • The platform uses the TRX token as collateral, instead of DAI. 

Justin Sun, TRON’s CEO, announced the launch of the Djed collateralized loan platform. The launch of the platform has been met with criticism from users who point out the similarity of the platform with the MakerDAO system. Djed was described by Sun as “something new”. The CEO of TRON made a pre announcement earlier this year when he conducted a survey for the TRON community to choose the name of the platform.

Similarities with platform based on Ethereum MakerDAO

The interface of the Djed platform has some modifications that differentiate it from MakerDAO. However, the system and the operation of the platform is practically the same as the Ethereum-based platform. Djed will allow its users to make collateralized loans with the TRX token, instead of Dai, in order to mint USDJ. In addition, the governance token used by the TRON platform is JED, MakerDAO uses MKR.

The operation of JED raises suspicions that the platform is a copy of the Single Collateral Dai. The TRON platform will allow users to take collateralized debt positions for which they must pay a stability fee. Another point that has revealed that Djed has copied MakerDAO are the contract names. These have the same names as those of the Ethereum-based platform: SaiProxyCreateAndExecute, DaiFab, SaiValuesAggregator. The name of these contracts refers to the term of the token generated by the Single Collateral Dai, Sai.

The TRON CEO said on Twitter that Djed is a DeFi project developed by the TRON community. Although he did not make direct reference to the allegations of plagiarism, Sun stated:

(The TRON community) They’ve learned a lot from all open source Defi projects & TRON is open to collaborating w/ all of them. I want to give MakerDAO a shoutout because it is the best amongst all!

It remains to be seen how the new platform will perform in the future and whether it will be able to differentiate itself from MakerDAO. The Ethereum-based platform has also been subject to criticism. In December 2019, Crypto News Flash revealed that $340 million deposited on the platform were at risk. A hacker with superficial programming knowledge was able to exploit a vulnerability in the system with a large amount of MKR. From this situation, changes were proposed to improve the platform.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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