Tron Stablecoin USDD Drops to $0.97, USDC Implemented to Defend $1 Peg – Bitcoin News

After the fallout from Terra UST and the current volatility of the crypto market, many eyes have focused on the Tron-based algorithmic stablecoin USDD. On June 13, the value of the crypto asset tron ​​(TRX) dropped significantly and Tron founder Justin Sun spoke about traders shorting the digital currency. Sun explained that the Tron DAO Reserve would deploy $2 billion to “combat” them and said that he did not believe the shorter ones could last 24 hours. Additionally, the USDD stablecoin dipped a bit on Monday, falling to $0.977 per unit during the cryptocurrency market carnage.

Another Stablecoin Wobbles, While Crypto Economy Value Drops Massively: Tron DAO Reserve Implements USDC to Defend USDD Peg

In one of the darkest Mondays in the world of crypto assets, the USDD stablecoin fell to $0.97 per unit and the Tron DAO Reserve had to deploy funds to defend the $1 peg. “For the extreme condition of the market, [Tron DAO Reserve] has received 700 million USDC to defend [the] USD fixation. Now the USDD collateralization rate is almost 300%,” the organization said. tweeted.

While a quick drop to $0.97 is not the biggest issue for some investors, and USDD is back in the $0.99 region, the same thing happened with UST the day before the massively larger unpeel. Tron’s native asset, TRX, is also said to be being heavily shorted by traders and Justin Sun explained that $2 billion would compensate shorteners causing a short squeeze.

“TRX short funding rate on Binance is negative 500% APR”, Sun tweeted. “[Tron DAO Reserve] will deploy 2 billion dollars to combat them. I don’t think they can last even 24 hours. [A] a little squeeze is coming,” he added.

Sun believes that overcollateralization will make market participants “more comfortable” with USDD

Then the Tron DAO Reserve announced a series of purchases aimed at defending the peg. After the 700 million USDC was purchased, the organization bought another 100 million USDC, and then another 100 million more USDC after that.

“Currently, the supply of USDC on TRON has reached $2.5 billion,” the Tron Reserve DAO commented after adding 650 million USDC Reserve Tron’s claim is that USDD backing will be over-guaranteed by at least 130% and Sun believes this method will make investors more comfortable with the stablecoin.

“We want USDD to be overcollateralized, which I think will make market participants more comfortable using us going forward,” Sun told Bloomberg on June 5.

Tags in this story
$1 parity, algorithmic stablecoin, defend peg, HE Justin Sun, justin sun, overcollateralization, Stablecoin, Stablecoins, Terra, Terra UST, Tron (TRX), Tron Blockchain, Tron DAO, TRON DAO Reserve, trx, USDD, USDD Reserve

What do you think about the Tron USDD stablecoin and its fight against the market carnage? Let us know what you think about this topic in the comments section below.

jamie redman

Jamie Redman is the news lead at News and a fintech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source, and decentralized applications. Since September 2015, Redman has written over 5,000 articles for News on the disruptive protocols emerging today.

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