The Tron stablecoin USDD remained below $1 parity for over 24 hours, with USDD hitting a low of $0.958 per unit around 3 AM ET. The Tron DAO Reserve deployed more Tron tokens and USDCs to protect the peg, and the DAO Reserve web page shows the coin to be 314% overcollateralized at the time of writing.
Tron’s USDD has failed to exceed $0.98 in the past 24 hours
USDD, the stablecoin issued on Tron’s blockchain, is an algorithmic stablecoin that also utilizes overcollateralization to hold $1 pegs. However, USDD has failed to hold a dollar peg for the past 24 hours and its price has wobbled over the past 72 hours. On Monday, USDD showed signs of weakness and slipped just below $1 parity, and on Tuesday, USDD hit a low of $0.974 per unit .
Wednesday, the TRON DAO Reservedeployed more USDC andTRXdeployed to help peg defense.” to protect the entire blockchain industry and the crypto market, Tron DAO Reservetransferred 100 million USDC in Tron to Binance to purchase sent 100 million USDC in Tron to buy TRXI tweeted. Not long after that tweet, Tron DAO Reserve wrote : “To protect the entire blockchain industry and the crypto market, TRON DAO Reserve is withdrawing 2.5 Billion; TRXfrom Binance “
Tron founder tells DAO Reserve to “keep withdrawing,” while supporters argue it is not fair to compare USDD and UST
As Tron DAO Reserve withdraws more assets to add collateral, Tron founder Justin Sun writes, “Keep withdrawing” like a captain at the helm Speculation and concern about USDD is constantly swirling in forums and social media, and and the tokens celsius network (CEL) and Tron’s USDD have become the most searched coins on coingecko.com over the past 24 hours. Through the thickness of that speculation regarding USDD’s collapse and USDD vs. Terraud (UST) are the most prominent examples conversation .
However, some USDD supporters believe that the debate and speculation over Tron’s stablecoin stems from fear, uncertainty, and doubt (FUD) tactics.” “There is so much FUD about Tron [and] USDD that people compare it to LUNA [and] UST,” Twitter account Thanx Finance wrote Wednesday.” Wake up, it’s not going to collapse, just check the stats and buy the dip. 300% + total collateral ratio. 700M [million] USDD supply [below 4.5B . market cap) of TRX,” the Tron supporter added.
At the time of writing, USDD is swapped at $0.974 per unit, but has failed to exceed $0.987 in the past 24 hours.
Image credits: Shutterstock, Pixabay, Wiki Commons