Since June 12, 2022, the tron-based stablecoin USDD has been trading below $1 USD. On Monday, USDD had a 24-hour trading range of about $0.943 to $0.966 per unit and hit an all-time low of $0.928 per unit the previous day, June 19. Despite being below USD parity, the Tron DAO Reserve said in a Twitter thread discussing a combination of “on-chain mechanisms (and) collateral assets,” that stablecoins are not de-pegged.
USDD trades below $1 all week
USDDtraded below $1 for over a week, and on Sunday USDD hit an all-time low at $0.928 per unit. The next day, Monday, the stablecoin was trading at $0.966 at the time of writing, a 24-hour low at $0.943. USDD is the ninth largest stablecoin by market capitalization, at approximately $696.28 million at 7 p.m. ET Monday night. The stablecoin’s global trading volume is approximately $83 million, and Monday’s top USDD exchanges included Kucoin, Huobi Global, Poloniex, and Pancakeswap version two (V2).
To protect the entire blockchain industry and the crypto market, TRON DAO Reserve purchased 10,000,000 on
#USDD #TRON
– TRON DAO Reserve (@trondaoreserve) . Jun 20, 2022.
The Tron DAO Reserve account on Twitter has announced the purchase of a number of crypto assets to protect the crypto ecosystem. On Monday, Tron DAO Reserve revealed that it had added 10 million USDC to “protect the entire blockchain industry and the crypto market. “Tron DAO Reserve ‘s web portalrevealed that as of 7:20 PM ET writing, stable coins were shown to be 324.35% excess collateralized. At that time, the website indicates that there are 1,008 million USDC, 140,013,886 tethers (USDT), 14,040.6 bitcoins (BTC), and 10,874,561,176 trons (TRX) in reserves.
Stablecoin trades for less than $1 per unit, but the official Twitter account for the TRON DAO Reserve states that USDD crypto assets are not depegged.” Is USDD depegged?” The Twitter account recently asked.” No, USDD is a decentralized stablecoin that relies on an on-chain mechanism&collateral assets, unlike centralized stablecoins e.x. USDC, which are connected to USD at very close spreads by bank mints and redemptions.” Tron DAO Reserve states that a certain percentage of volatility is “inevitable. “USDD’s financial organizationadded:
Currently, the market volatility rate is within ±3%, which is acceptable. We monitor the market closely and act accordingly.
Tron DAO Reserve Says USDD Ecosystem Aims to Focus on Collaborations and Multichain Expansion
Reserve also discussed,He also explained the “massive short position” he was betting against Tron (TRX), the blockchain’s native crypto asset; USDD is not the only stablecoin suffering from a certain percentage of volatility in the crypto industry. Abracadabra’s stablecoin MIM, a decentralized financial (defi) protocol, briefly fell to $0.91 two days ago when bitcoin (BTC) fell to $17,600 per unit. Since then, Abracadabra’sMagic Internet Money (MIM)has bounced back to the $0.99 level.
Additionally, the stablecoinNeutrino USD (USDN)has been volatile during the week’s market upheaval; USDN is a stablecoin created by the smart contract Waves (WAVES) protocol, and to mint USDN WAVES as collateral is required; like MIM, USDN has managed to get back into the $0.99 range.
As far as USDD is concerned, Tron DAO Reserve doesn’t seem to be sweating being below $1 parity; Tron DAO Reserve noted in a recent Twitter thread that it aims to be the top dog in decentralized stablecoins We have done so.” We will focus on collaborating with different cefi/defi platforms and expanding multi-chain. We aim to offer the best decentralized stablecoin ever on the market,” concluded a Tron DAO Reserve Twitter thread
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