USDD briefly lost its peg to the US dollar

by in Cryptocurrency News

USDD

On Monday, June 13, Tron's algorithmic stablecoin USDD briefly lost its peg to the US dollar and dropped to $0.97.

Half-hour USDD/USD chart of the Poloniex exchange. Data: Trading View. The decoupling occurred against the background of the collapse of the cryptocurrency market. At the time of writing, the price of Bitcoin has failed the level of $24,800, and Ethereum has fallen below $1270.

Earlier, TRON DAO Reserve purchased BTC and TRON tokens for a total of $50 million to back USDD.

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According to a Twitter post, the purchase is dictated by the “protection of the entire blockchain industry and the cryptocurrency market as a whole.”

According to the organization’s website, there are more than 723.3 million USDD in circulation at the time of writing, backed by reserves in Bitcoin, USDT, and TRX at almost 185% of the value.

TRON DAO Reserve said it received 700 million USDC to protect the USDD peg to the US dollar. At the time of writing, the collateral level is 280%.

The head of the Tron Foundation, Justin Sun, announced the appearance of USDD in April, the issue took place on May 5th. According to the algorithm of its work, the asset repeats the model of the "stablecoin" TerraUSD (UST).

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On May 10, TRON DAO Reserve began its first operations to acquire reserve assets. The organization bought 500 BTC at an average price of $31,000 worth more than $15.5 million, and 595.7 million TRX cost $45.6 million.

Sun later promised to allocate $2 billion through the TRON DAO Reserve to prevent the stablecoin from losing its peg to the US dollar, as happened with UST. According to him, the team learned from the collapse of Terra.