USDD, a Tron-based stablecoin has been below the value of a U.S. Dollar since June 12, 2022. USDD’s 24-hour trading range was between $0.943- $0.966 per unit on Monday. The USDD record low of $0.928 per unit occurred the previous day, June 19. Despite being below the U.S. dollar parity, the Tron DAO Reserve says the stablecoin has not depegged in a Twitter thread that discusses a combination of an “on-chain mechanism [and] collateralized assets.”
USDD Trading Below $1 for the Whole Week
USDD traded at a lower price than the U.S. Dollar for more than a week. On Sunday USDD hit an all-time low of $0.928/unit. On Monday the stablecoin traded at $0.966 and fell to $0.943 in the 24 hours following. USDD was the 9th largest stablecoin in terms of market capitalization on Monday night at 7:28 PM (ET). Global trade volumes for the stablecoin have reached approximately $83 million. The top USDD exchanges Monday were Kucoin and Poloniex. Pancakeswap Version 2 (V2).
TRON DAO Reserve purchased 10,000,000 in order to safeguard crypto markets and the blockchain industry. #USDDOn #TRON.
— TRON DAO Reserve (@trondaoreserve) June 20, 2022
Twitter’s Tron DAO Reserve account has posted numerous announcements about crypto asset purchases in order to preserve the crypto ecosystem. On Monday, the Tron DAO Reserve revealed it added ten million USDC to “safeguard the overall blockchain industry and crypto market.” The Tron DAO Reserve web portal indicates that the stablecoin is overcollateralized by 324.35% at the time of writing at 7:20 p.m. (ET). The website reports that there are 1.080 Billion USDC, 140,013,886 USDT, 14,040.6 Bitcoin (BTC) and 10,874,566.176 TRX in reserve.
While the stablecoin has been trading for under $1 per unit, the Tron DAO Reserve’s official Twitter account says that the USDD crypto asset has not depegged. “Is USDD depegged?” the Twitter account recently asked. “No. USDD is a decentralized stablecoin that depends on an on-chain mechanism & collateralized assets, unlike centralized stablecoin e.x. USDC, which is attached to USD in a very close spread by banking mint and redemption.” Tron DAO Reserve said that a certain percentage of volatility is “unavoidable.” The USDD treasury organization added:
The market volatility rate currently is within +-3%. This range is acceptable. We will closely monitor the market and take action accordingly.
Tron DAO Reserve: USDD Ecosystem Focuses on Collaborations, Multichain Expansion
Tron DAO Reserve is also available discussed “massive short positions” that were betting against tron (TRX), the blockchain’s native crypto asset. USDD isn’t the only stablecoin that’s been affected by volatility in crypto. The decentralized finance (defi) protocol Abracadabra’s stablecoin MIM briefly slid to $0.91 when bitcoin (BTC) slipped to $17,600 per unit two days ago. Since then, Abracadabra’s magic internet money (MIM) has jumped back to the $0.99 range.
Also, USDN (stablecoin neutrino) was volatile this week due to market turmoil. USDN, a stablecoin created by Waves protocol in smart contracts and collateralized with WAVES, is mintable. USDN is similar to MIM and has come back up to $0.99.
As far as USDD is concerned, the Tron DAO Reserve doesn’t seem to be sweating being below the $1 parity. Tron DAO Reserve stated in a recent Twitter thread it wants to be the best decentralized stablecoin. “We will focus on collaborations with different cefi/defi platforms and multichain expansion. We aim to offer the best decentralized stablecoin ever available in the market,” the Tron DAO Reserve’s Twitter thread concludes.
Let us know your thoughts on the USDD Market this Week. Do you agree with the Tron DAO Reserve’s explanation? Comment below to let us know your thoughts on this topic.
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