Tron DAO Reserve adds another 500 million USDC to help USDD stablecoin peg

Tron DAO bought another $500 million worth of the stablecoin USDC on Tuesday to further expand its reserve assets pool and salvage confidence in its algorithmic stablecoin called Decentralized USD (USDD).

Tron DAO confirmed the latest acquisition in a Twitter post.

Today’s transaction comes a day after Tron DAO already injected 700 million USDC to its stablecoin reserves and allocated another 2 billion to guard against short positions against tron (TRX).

Tron’s founder Justin Sun stated in April that he wanted to amass $10 billion of assets for the USDD stablecoin, a move inspired by the founders of the now-collapsed TerraUST.

Over the last month, Tron has continued to grow its assets rapidly so it controls more collateral than the total value of its stablecoin supply. This approach, it believes, would prevent USDD from crumbling under intense pressure.

Still, the USDD stablecoin has slightly de-pegged against the dollar amid a major slump in broader crypto markets. USDD dipped as low as $0.974 Tuesday morning before recovering to $0.98 at the time of writing, according to CoinGecko data.

At the moment, USDD’s market capitalization is slightly over $700 million, whereas it holds more than 1.5 billion in collateral reserves. According to Tron DAO’s website, it currently holds 1 billion USDC, 140 million USDT, and 1.9 billion tron ($110 million) and 14,000 bitcoin ($310 million).

About Author

Vishal Chawla is a reporter who has covered the ins and outs of the tech industry for more than half a decade. Prior to joining The Block, Vishal worked for media firms like Crypto Briefing, IDG ComputerWorld and CIO.com.

Source: https://www.theblock.co/linked/151936/tron-dao-reserve-adds-another-500-million-usdc-to-help-usdd-stablecoin-peg?utm_source=rss&utm_medium=rss