TRON DAO Reserve has today announced on Twitter that it has purchased an extra $10 million worth of USDD and $10 million worth of TRX for its reserve.
The tweet reads:
“To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have purchased another $10,000,000 #USDD and #TRX as reserve.”
TRON reserve had fallen by $20 million following the current bear market and the added amount will bring back the reserve to its previous level. TRON has been adding to its reserve continuously as the crypto bear market persists.
The update by TRON DAO Reserve was also confirmed by Justin Sun, who is the founder and leader of the TRON Foundation.
total 20 million for today! https://t.co/Hcaq58TZhg
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) July 8, 2022
The Fight to preserve USDD dollar parity
USDD is TRON’s algorithmic stablecoin, similar to the USTC (previously UST) of Terra Classic (previously Terra LUNA).
To prevent the USDD from undergoing a similar collapse as what happened to the USTC, TRON has collateralized USDD using a TRON DAO Reserve.
The DAO holds $2.2 billion worth of collateral in BTC, USDC, USDT, TRX, and the added $10 million worth of USDD. The USDD is about 316% overcollateralized.
Last month, the TRON DAO Reserve added $2 billion as it fought shorting against the TRX in trying to perverse the USDD dollar parity. The USDD had spent a week trading below $1 and even went to as low as $0.93 but has since recovered to the dollar party. Following the de-peg, TRON DAO has added USDD and TRX on several occasions.
While the launch of the USDD stablecoin was hyped as a major booster for TRON, TRON has had to fight tooth and nail to ensure the algorithmic stablecoin doesn’t collapse like the UST. In general, while the USDD has maintained its dollar parity so far, the TRON token has dropped by about 50% from its 2021 high of $0.16.
14 total views, 6 views today