Tron’s algorithmic stablecoin, called Decentralized USD, also known as USDD, fell to $0.97, marking the second time the stablecoin has dropped off the dollar’s peg.
since its inception earlier this year In June, the stablecoin had tumbled to $0.96 before rebounding back to its previous value.
The USDD price drop comes as stablecoin liquidity shrinks on Curve, a decentralized platform on Ethereum where traders can currently trade USDD against three other stablecoins within a liquidity pool. more than 80% All funds in the liquidity pool are held solely in USDD. This indicates that traders prefer other stablecoins such as: USDT, USDC and DAI.
that USDDleaveby the Tron DAO Reserve, which is backed with tron coins and other collateral assets to maintain its value. While the main collateral for stablecoin is tron.
Tron DAO Reserve claimedThe stablecoin USDD is 200% collateralized, which means that each stablecoin has $2 in collateral, and the official website claims that USDD has a market cap of slightly over $725 million. It has more than $1.45 billion in guaranteed reserves.
Tron founder Justin Sun said on Twitter that he hadbuyMore than 1 million in USDD to help protect the peg by Swap USDC to USDD via 1inch, however, it is not clear whether the money came from the Tron DAO Reserve or Sun’s own personal assets.
Deploying more capital – steady lads https://t.co/55pra5wQMi https://t.co/CexyaBy2hx
— HE Justin Sun
(@justinsuntron) December 12, 2022
refer : LINK
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