After nearly a week of trading below the dollar, Tron’s stablecoin has yet to restore parity with the dollar.
The Newly Launched USDD Stablecoin Has Been Trading Below The Dollar For Almost A Week After falling below the dollar peg on June 13
USDD hit an all-time low of $0.9255 on June 19, before recovering to $0.9608 at the time of writing, according to CoinMarketCap. The value remains below $1 which is the intended trading value.
On June 17, the Tron DAO Reserve claimed that USDD was not de-pegged inTwitter thread pinned
“USDD is a decentralized stablecoin based on network mechanisms and collateral assets.”
The argument goes on that USDD, unlike centralized stablecoins like Circle’s USDC, is not tied to the dollar.
Tron founder Justin Sun initially said USDD was downgraded as a result of short investors targeting the network’s TRX token on the Binance crypto exchange, despite Sun promising 2. Billions of Dollars from Tron DAO Reserve to Fight Short Investors, But USDD Continues Below Dollar
Previously, Tron DAO Reserve has announcedthat they bought 10,000,000 USDD in an auction for “Protect the Blockchain Industry as a Whole and the Crypto Market”
What is USDD?
Initially launched as the Stablecoin Algorithm, USDD has changed its course of action after Terra’s Stablecoin UST algorithm collapsed last month. Margin support includes Bitcoin , TRX, USDT and USDC reserves.
The total value of all USDD coins issued by Tron is $723 million, according to the Tron DAO Reserve website, and the currency has a 324% reserve ratio with $2.3 billion in margin.
The Tron ecosystem is the 3rd largest blockchain according to TVL (Total Value Locked), with just $4 billion locked in smart contracts via 9 different Decentralized Financial (DeFi) protocols. According to DeFi Llama
Its TVL peaked in mid-November last year at $6.74 billion and reached $6.29 billion on June 8, a 36 percent drop to $4 billion in less than two weeks.
Amid a broad crypto market crash, Tron’s TRX token is currently trading at $0.061, down 1% for the day and more than 20% in the past week.
However, Tron DAO Reserve writes inTweetOn June 17th, “We are only 42 days old, we still have a lot of products to build and huge growth in the future.”
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