- Tron’s USDD rolled out recently and has gained significant popularity since then, with listing on several DeFi protocols.
- And recently, the Tron DAO highlighted his purchase of TRX in reserve to support the stablecoin.
- Stablecoins have made a significant position in the crypto sphere, it is to see how this new player performs in the future.
Stablecoin’s Space Expanding Gradually
The reserve system of Terra’s UST is emerging to be a well-known scheme. And it seems like the USDD stablecoin project by Tron is also following in its footsteps.
The project has several partners now and USDD is now listed on Kyberswap, Uniswap, Pancakeswap, Sun(dot)io, Sunswap, Ellipsis, and Curve Finance. Data by tronscan(dot)org highlights that currently there are around 211,245,005.49 USDD.
And according to recent data, Uniswap version three (v3) is the most active exchange to buy and sell USDD. However, if we compare Terra USD (UST) and USDD, UST is still a lot massive with respect to its market cap which is $18.6 Billion, whereas that of USDD is around $2.11 Million.
Recently, Justin Sun, the founder of Tron and Tron DAO, announced that the team has bought 504,600,250 TRX with an average price of 0.07727 per unit. The Tron DAO Reserve account further signified that the purchase would be utilized as a reserve asset to safeguard the overall blockchain industry and crypto market.
Sun Tweeted that Tron DAO Reserve has done a good job.
.@trondaoreserve has done its job! https://t.co/EhVoYjnlmX
— H.E. Justin Sun ?
Although stablecoins were created keeping the concerns regarding the cryptocurrencies in mind, specifically the high volatility. And decentralized and algorithmic stablecoins are good to hear, but then there are also questions as to whether the stablecoins can maintain the peg properly for a long time or not.
A certain centralized stablecoins projects didn’t make it to the success as such. For instance, Origin Protocol, the OUSD stablecoin issuer, went through a flash loan attack and the coin temporarily lost its peg. And there are several others like neutrino USD (USDN) dropped for a brief time from the pegged dollar price during April first week. Though some recover from the peg.
During the settlement, the Tron DAO Reserve purchase of 504,600,250 TRX was valued at $38.99 million.
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Source: https://www.thecoinrepublic.com/2022/05/08/tron-dao-buys-38-million-in-trx-aim-is-to-safeguard-the-usdd-stablecoin/