Key Takeaways
- USDD is overcollateralized by 313.7% at the time of writing
- The TRON DAO Reserve currently holds $2.2 billion in collateral across TRX, BTC, USDT, and USDC for 990 Million USDD
TronDAO, a Decentralized Autonomous Organization (DAO), has reported over $2.2 billion in reserves. A reserve comprises of cryptocurrencies and other stablecoins amassed to overcollateralize USDD and was guaranteed to be maintained at a minimum of 130% of the total amount of USDD in issuance. The TRON DAO Reserve currently holds $2.2 billion in collateral across TRX, BTC, USDT, and USDC for 990 Million USDD,
According to the official website, USDD is overcollateralized by 313.7% at the time of writing, with four different crypto assets backing the project. Earlier in Mid-June TronDAO had sent over $120 million worth of USD coins (USDC) to Binance to “purchase TRX,” creating buying pressure among traders. The DAO later sent another $100 million for the TRX purchase.
The planned withdrawals are part of the firm’s concerted effort to shrink liquidity for short traders and prevent a collapse, as that of Terra’s UST stablecoin. Last month, TRON DAO announced it has added US$500 million in USDC to its reserve to prevent its algorithmic stablecoins from de-pegging.
USDD, the networks’ algorithmic stablecoin, has witnessed ups and downs in the recent few days. Between June 13 and June 27, Tron’s stablecoin USDD dropped lower than the $1 parity and slipped to a low of $0.928 per unit on June 19. During the past few days, USDD has managed to jump back to the $0.98 to $0.99 region while reaching $1 on July 3.
Despite Tron numerous efforts to maintain the dollar parity ,USDD is de-pegging currently. USDD now has to regain parity with the U.S. dollar as the algorithmic stablecoin is currently trading at $ 0.9931067 per (USDD / USD) and with a current market cap of $ 718.34M USD.
As far as USDD is concerned, Tron DAO Reserve is adamant on regaining the lost dollar parity and achieving the top spot among decentralized stablecoins. Despite the impressive recent numbers, many believe Tron might face algorithmic stablecoin Terra’s fate if it fails to maintain dollar parity.
