After Monday’s crypto market upheaval, crypto prices showed some improvement the following day. However, Tron’s stablecoin USDD fell again to $0.974 per unit, indicating continued slight instability in the fiat-pegged token The drop to $0.97 follows Monday’s deviation from parity, as Tron DAO Reserve defended its reserve occurred after a massive deployment of USDC to shore up the reserve.
Tron’s USDD stabled coins remain below $1 parity, and Tron DAO Reserve has deployed
Many cryptocurrency supporters are watching the Tron stablecoin USDD very closely after an incident within the Terra blockchain ecosystem: on June 13, the algorithmic stablecoin fell to $0.977 per unit while the crypto market suffered extreme losses throughout the day The price dropped to $0.977 per unit.
During Monday evening’s trading session, the price of bitcoin (BTC) fell below $21K and held just above its 2017 all-time high. On Tuesday, crypto prices improved slightly, but USDD is still under $1 parity.
For the current market extremes, @trondaoreservereceived another 500 million USDC to protect the. 27} pegged to #USDD.28} USDD collateral rate is currently 310%. https://t.co/3ZdRvCB0rD pic.twitter.com/z0PXqPXKhu #32} #33
As of this writing, USDD is pegged at 1 unit exchanging at $0.978 to $0.98 per unit, but hit a low on Tuesday at $0.974253 per token. The most recent low was a touch down from the drop recorded the day before and occurred at 3:45 AM ET on Tuesday.
The drop occurred after the Tron DAO reserve decided to deploy millions of USDC to protect the token’s $1 parity.” To protect the entire blockchain industry and the crypto market, the Tron DAO reserve is increasing its 650,000,000 USDC supply in TRON,” the organizationexplained. “Currently, the USDC supply on TRON has reached 2.5 billion USDC.”
Sun stands out (at least) for two big moves: withdrawing $500 milly and $150 milly USDC from Aave from two different wallets (these still have $1.3 billy)
Look at the $26 network fee for withdrawing from the protocol and transferring the half billy.Take that, Western Union pic.twitter.com/2xw08RXzBG.
– Andrew T (@Blockanalia) June 13, 2022
People are concerned about USDD, which saw a slight de-peg the day before it plunged toward $0.704 per unit on May 9, 2022, on terra This is because of its similarity to the former stablecoin UST. On Tuesday, Tron founder Justin Sun tweeted about USDD’s move against Tether (USDT
“2pool recovered back to 55/45 balance,” Sun said. “I believe it will be back to 50/50 within 24 hours [at a 247% collateral rate]. You may see fear here, but I see [a 2% profit opportunity]. “Sun alsoshared datarelating to stablecoin trading volume on the Tron network on June 13. According to the
webpage, the reserve’s collateral ratio is 246.26%. This is approximately $1,781,291,610 at the time of writing, and the number of USDDs in circulation today is 723,321,764 USDDs, since the USDD peg collateral is Tron (TRX), with 10.87 billionheld. TRXand likewise holds 14,040 bitcoins (BTC
are also held, and 500 million USDC are recorded in the Tron DAO reserve ledger.Tron DAO reserve statistics show that other stablecoins are collateralized at 100% reserve and DAI is over-collateralized at 120 . The website highlights that USDD is much more collateralized than the other stablecoins featured.
A defi protocol called Justlend that offers a 20% APY similar to that once offered by Terra’s defi application Anchor, today with a total value lock (TVL) of $2.36 billion It is Tron’s largest defi application; Tron’s total TVL is $4.55 billion, meaning Justlend’s dominance today is 51.86%.Justlend has seen a TVL increase of over 33% in the past 30 days, despite the recent market upheaval. With USDD at a low of $0.974, an investment of $100 is only equivalent to $97.40.
After the USDD price dropped to $0.97 again, Tron DAO Reserve deployed another 500 million USDC to protect the pegand increased its collateral backup to 310% by 8:40 AM ET Tuesday morning.” Due to the current market extremes, (Tron DAO Reserve) received an additional 500 million USDC to protect the USDD peg. Currently, the USDD collateral rate is 310%,” Tron DAO Reserve tweeted.
Image credits: Shutterstock, Pixabay, Wiki Commons, Illustration by Voar CC from Shutterstock.com .