{"id":12746,"date":"2022-06-14T21:23:56","date_gmt":"2022-06-14T21:23:56","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/despite-overcollateralized-reserve-trons-usdd-stablecoin-slips-to-0-974-per-token-altcoins-bitcoin-news\/"},"modified":"2022-06-14T21:23:56","modified_gmt":"2022-06-14T21:23:56","slug":"despite-overcollateralized-reserve-trons-usdd-stablecoin-slips-to-0-974-per-token-altcoins-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/despite-overcollateralized-reserve-trons-usdd-stablecoin-slips-to-0-974-per-token-altcoins-bitcoin-news\/","title":{"rendered":"Despite Overcollateralized Reserve, Tron’s USDD Stablecoin Slips to $0.974 per Token \u2013 Altcoins Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Following the crypto market carnage on Monday, the following day crypto prices have shown some improvement. However, Tron\u2019s stablecoin USDD has once again dropped to $0.974 per unit, indicating a small amount of instability continues to plague the fiat-pegged token. The dip to $0.97 follows Monday\u2019s deviation from the parity and comes after the Tron DAO Reserve deployed large quantities of USDC to shore up the reserve\u2019s defense. <\/strong><\/p>\n

Tron\u2019s USDD Stablecoin Continues to Remain Lower Than the $1 Parity, Tron DAO Reserve Deploys 500M USDC<\/h2>\n

Many cryptocurrency supporters are watching Tron\u2019s stablecoin USDD very closely after the incident that took place within the Terra blockchain ecosystem. On June 13, the algorithmic stablecoin slipped to $0.977 per unit<\/a> while crypto markets suffered extreme losses<\/a> throughout the day.<\/p>\n

During the evening trading sessions on Monday, bitcoin\u2019s (BTC<\/a>) price fell below $21K and held just above 2017\u2019s all-time price high. On Tuesday, crypto prices have seen a slight improvement but USDD is still under the $1 parity.<\/p>\n

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For the current market extreme condition, @trondaoreserve<\/a> has received another 500 million USDC to defend #USDD<\/a> peg. Now USDD collateralization rate is 310%. https:\/\/t.co\/3ZdRvCB0rD<\/a> pic.twitter.com\/z0PXqPXKhu<\/a><\/p>\n

\u2014 TRON DAO Reserve (@trondaoreserve) June 14, 2022<\/a><\/p>\n<\/blockquote>\n

At the time of writing, USDD is swapping for values between $0.978 and $0.98 per unit, but hit a low on Tuesday at $0.974253 per token. The most recent low is a touch lower than the drop recorded the day prior, and it happened at 3:45 a.m. (ET) on Tuesday.<\/p>\n

The drop happened after the Tron DAO reserve decided to deploy millions of USDC to defend the token\u2019s $1 parity. \u201cTo safeguard the overall blockchain industry and crypto market, Tron DAO reserve have increased 650,000,000 USDC supply on TRON,\u201d the organization explained<\/a>. \u201cCurrently USDC supply on TRON has reached $2.5 billion.\u201d<\/p>\n

People are concerned about USDD because it is similar to Terra\u2019s former stablecoin UST which saw a slight de-pegging the day before it dive-bombed toward $0.704 per unit on May 9, 2022. On Tuesday, Tron\u2019s founder Justin Sun tweeted about the USDD movement against tether (USDT<\/a>).<\/p>\n

\u201c2pool have recovered back to 55\/45 balance,\u201d Sun said<\/a>. \u201cI believe it will be back to 50\/50 in 24 hours with [a] 247% collateralization rate. You might see the fear here but I see [a] 2% profit opportunity.\u201d Sun also shared data<\/a> tied to the stablecoin transaction volume on the Tron network on June 13.<\/p>\n

Currently, at 7:30 a.m. (ET), the Tron DAO reserve web page<\/a> shows the reserve\u2019s collateral ratio is 246.26%. That\u2019s roughly $1,781,291,610 at the time of writing, while the number of USDD in circulation today is 723,321,764 USDD. The collateral backing USDD\u2019s peg consists of tron (TRX<\/a>), as there\u2019s 10.87 billion TRX<\/a> held, and 14,040 bitcoin (BTC<\/a>) as well.<\/p>\n

140 million USDT<\/a> is also held by the reserve and 500 million USDC is also recorded in the Tron DAO reserve ledger. The Tron DAO reserve stats show that other stablecoins are collateralized by 100% reserves and DAI is overcollateralized by 120%. The website highlights that USDD is a lot more collateralized than the other stablecoins showcased.<\/p>\n

Tron DAO Reserve Deploys 500 Million USDC to Defend Stablecoin\u2019s Peg at 8:40 a.m. Eastern Standard<\/h2>\n

The defi protocol called Justlend, which offers a 20% APY similar to the one once offered by the Terra defi application Anchor, is Tron\u2019s largest defi application today, with $2.36 billion total value locked (TVL). Tron\u2019s entire TVL is $4.55 billion which means Justlend\u2019s dominance today is 51.86%. Justlend still saw a TVL increase of over 33% during the last 30 days despite the recent market carnage. With USDD hitting a low of $0.974, a $100 investment would only equate to $97.40.<\/p>\n

After the price of USDD dropped to $0.97 again, the Tron DAO Reserve deployed<\/a> another 500 million USDC to defend the peg, bringing the collateral backing up to 310% by 8:40 a.m. (ET) on Tuesday morning. \u201cFor the current market extreme condition, [the Tron DAO Reserve] has received another 500 million USDC to defend USDD peg. Now USDD collateralization rate is 310%,\u201d the Tron DAO Reserve tweeted.<\/p>\n

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\nTags in this story
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Bitcoin (BTC)<\/a>, collateral<\/a>, justin sun<\/a>, Justlend<\/a>, Justlend USDD<\/a>, Justlend\u2019s dominance<\/a>, overcollateralized<\/a>, Stablecoin<\/a>, Terra Blockchain<\/a>, Tron (TRX)<\/a>, TRON DAO Reserve<\/a>, trx<\/a>, TVL<\/a>, USDC<\/a>, USDC supply<\/a>, USDD<\/a>, USDD Stablecoin<\/a>, USDT<\/a><\/div>\n<\/div>\n

What do you think about Tron\u2019s stablecoin USDD dropping to $0.97 per coin? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Illustration by Voar CC from Shutterstock.com <\/em><\/p>\n

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