TRON DAO withdrew a total of 7.1 billion TRX from the exchange to bring the algorithmic stablecoin USDD out of depeg. However, the USDD price has not yet recovered to 1 USD.
TRON DAO’s efforts to “save” USDD
On the evening of June 16, TRON DAO, the custodian behind TRON’s Decentralized USD (USDD) algorithmic stablecoin, said it would withdraw an additional 3 billion TRX from CEX and DEX exchanges to lift the TRX price.
Previously, on June 15, TRON DAO also announced the withdrawal of nearly 4.1 billion TRX from Binance. Combined, nearly 7.1 billion TRX has been withdrawn from exchanges in the past 48 hours, accounting for about 7.7% of circulating supply.
These are the measures taken by TRON DAO Reserve to pull the TRX price and help the USDD algorithmic stablecoin pegged here recover to 1 USD, out of depeg status.
As reported by Coincu News, Decentralized USD (USDD) is a new algorithmic stablecoin launched on the TRON blockchain in early May 2022, considered a clone of LUNA-UST, making the two cryptocurrencies total. This market capitalization of up to 60 billion USD “evaporated” from the market within just 2 weeks.
USDD can be considered as a “copy” of the LUNA-UST model, when using TRX burning to generate USDD, creating a margin fund in other cryptocurrencies for USDD, and supporting APY 30 interest. % when sending USDD in protocols supported by the project.
However, during the crypto market dump since the weekend, USDD has started to depeg (slide from the $1 value mark), forcing TRON founder Justin Sun and TRON DAO Reserve hedge fund to have to launched many “relief” moves, namely deploying 2 billion USD to take the necessary actions.
On June 14, TRON DAO Reserve announced it had received 1.2 billion USDC to save the USDD price. The fund then used 320 million to buy TRX on Binance.
As of the evening of June 16, the TRON DAO Reserve fund has more than 14,000 BTC, 140 million USDT and 780 million USDC remaining, with a total value of about $1.2 billion – nearly double the supply of 723 million USDD in issue.
Even so, USDD price is still fluctuating around the $0.975 zone, 2.5% depeg from the $1 mark it has to maintain.
TRX price is recovering slightly to 0.06 USD after falling to 0.046 USD on June 15, the lowest level since June 2021.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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