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USDD Continues to Trade for Under $1 — Tron DAO Reserve Insists Stablecoin Has Not Depegged

21/06/2022 by Idelto Editor

Since June 12, 2022, the Tron-based stablecoin USDD has remained below a U.S. dollar in value. On Monday, USDD had a 24-hour trading range of around $0.943 to $0.966 per unit and the day prior on June 19, USDD saw an all-time low at $0.928 per unit. 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 Trades Below $1 for an Entire Week

USDD has been trading for lower than a U.S. dollar for over a week and on Sunday, USDD tapped an all-time low at $0.928 per unit. The following day on Monday, the stablecoin has been exchanging hands for $0.966 at the time of writing, and it saw a 24-hour low at $0.943. USDD is the ninth-largest stablecoin by market capitalization, with approximately $696.28 million on Monday evening at 7:00 p.m. (ET). The stablecoin has seen roughly $83 million in global trade volume and the top USDD exchanges on Monday include Kucoin, Huobi Global, Poloniex, and Pancakeswap version two (V2).

To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have purchased 10,000,000 #USDD on #TRON.

— TRON DAO Reserve (@trondaoreserve) June 20, 2022

The Tron DAO Reserve account on Twitter has been announcing numerous crypto asset purchases to safeguard 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). At that time, the website shows there is 1.080 billion USDC in the reserve, 140,013,886 tether (USDT), 14,040.6 bitcoin (BTC), and 10,874,566,176 tron (TRX).

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:

Currently, the market volatility rate is within +- 3%, an acceptable range. We will watch the market very closely and act accordingly.

Tron DAO Reserve Says USDD Ecosystem Aims to Focus on Collaborations and Multichain Expansion

The Tron DAO Reserve also discussed “massive short positions” that were betting against tron (TRX), the blockchain’s native crypto asset. USDD is not the only stablecoin in the crypto industry that has suffered from a certain percentage of volatility. 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.

Furthermore, the stablecoin neutrino usd (USDN) has been volatile during the market carnage this past week. USDN is a stablecoin crafted by the Waves (WAVES) protocol in a smart contract and minting USDN involves collateralizing WAVES. Like MIM, USDN has managed to come back to the $0.99 range.

As far as USDD is concerned, the Tron DAO Reserve doesn’t seem to be sweating being below the $1 parity. Tron DAO Reserve noted in the recent Twitter thread that it aims to be the top dog of decentralized stablecoins. “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.

What do you think about the USDD market this past week? Do you agree with the Tron DAO Reserve’s explanation? Let us know what you think about this subject in the comments section below.

Tron’s USDD Remains Below the $1 Parity for 24 Hours, Token Hits a Low at $0.95 per Unit

15/06/2022 by Idelto Editor

Tron’s stablecoin USDD has remained below the $1 parity for well over 24 hours and around 3:00 a.m. (ET), USDD hit a low of $0.958 per unit. The Tron DAO Reserve has deployed more tron tokens and USDC to defend the peg and the DAO’s reserve web page shows the coin is overcollaterized by 314% at the time of writing.

Tron’s USDD Has Been Unable to Surpass $0.98 During the Past 24 Hours

The stablecoin USDD, issued on the Tron blockchain, is an algorithmic stablecoin that also leverages overcollateralization to hold a $1 peg. However, USDD has not been able to keep the $1 parity over the last 24 hours, and the price has wobbled during the last 72 hours. On Monday, USDD showed signs of weakness, slipping just below the $1 parity, and then on Tuesday, the value of USDD hit a low of $0.974 per unit.

On Wednesday, the Tron DAO Reserve deployed more USDC and TRX to help defend the peg. “To safeguard the overall blockchain industry and crypto market, Tron DAO Reserve has transferred 100 million USDC on Tron to Binance to purchase TRX,” the organization tweeted. Not too long after that tweet, the Tron DAO Reserve wrote: “To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will withdraw 2.5 billion TRX out of Binance.”

Tron Founder Tells DAO Reserve to ‘Keep Withdrawing,’ While Supporters Claim It’s Not Fair to Compare USDD With UST

As the Tron DAO Reserve withdrew more assets to add to the collateral, Tron’s founder Justin Sun wrote: “Keep withdrawing,” like a captain at the helm. Speculation and concerns about USDD are swirling constantly on forums and social media and the tokens celsius network (CEL) and Tron’s USDD are the most searched coins on coingecko.com during the last 24 hours. Throughout the thick of it, speculation concerning USDD collapsing and comparing USDD to terrausd (UST) is some of the most prominent conversation.

However, some USDD supporters believe the discussions and speculation surrounding Tron’s stablecoin stem from fear, uncertainty, and doubt (FUD) tactics. “There’s so much FUD about Tron [and] USDD as people compare them to LUNA [and] UST,” the Twitter account Thanx Finance wrote on Wednesday. “Wake up, it’s not gonna collapse, just check the stats and buy the dip. 300% + total collateral ratio. 700 [million] USDD supply [is less than the] 4.5B TRX [market capitalization],” the Tron supporter added.

At the time of writing, USDD is swapping for $0.974 per unit, but it has not been able to surpass $0.987 during the past 24 hours.

What do you think about Tron’s USDD falling to $0.95 on Wednesday? Let us know what you think about this subject in the comments section below.

Tron’s Stablecoin USDD Falls to $0.97, USDC Deployed to Defend the $1 Parity

13/06/2022 by Idelto Editor

After the Terra UST fallout and the current crypto market volatility, many eyes have been focused on the Tron-based algorithmic stablecoin USDD. On June 13, the crypto asset tron (TRX) dropped significantly in value and Tron’s founder Justin Sun spoke about traders shorting the digital currency. Sun explained that the Tron DAO Reserve would deploy $2 billion to “fight them” and said he didn’t think the shorters could last 24 hours. Furthermore, the stablecoin USDD took a small dive on Monday, dropping to $0.977 per unit during the crypto market carnage.

Another Stablecoin Wobbles, While the Crypto Economy’s Value Drops Massively — Tron DAO Reserve Deploys USDC to Defend USDD Peg

On one of the blackest Mondays in the world of crypto assets, the stablecoin USDD fell to $0.97 per unit and the Tron DAO Reserve had to deploy funds to defend the $1 parity. “For the market extreme condition, [Tron DAO Reserve] has received 700 million USDC to defend [the] USDD peg. Now USDD collateralization rate is nearly 300%,” the organization tweeted.

While a quick dip to $0.97 isn’t the biggest deal to some investors, and USDD moved back to the $0.99 region, the same thing happened to UST the day before the massively larger de-peg. It is also being said that Tron’s native asset TRX is being heavily shorted by traders and Justin Sun explained that $2 billion would offset the shorters causing a short squeeze.

“Funding rate of shorting TRX on Binance is negative 500% APR,” Sun tweeted. “[Tron DAO Reserve] will deploy 2 billion USD to fight them. I don’t think they can last for even 24 hours. [A] short squeeze is coming,” he added.

Sun Believes Overcollateralization Will Make Market Participants ‘More Comfortable’ With USDD

Then the Tron DAO Reserve announced a number of purchases meant to defend the peg. After the 700 million USDC was purchased, the organization bought another 100 million USDC, and then another 100 million more USDC after that.

“Currently USDC supply on TRON has reached $2.5 billion,” the Tron DAO Reserve remarked after adding 650 million USDC to the reserve. Tron’s claim is that USDD backing will be overcollateralized by at least 130% and Sun believes this method will make investors more comfortable with the stablecoin.

“We want to have USDD to be overcollateralized, which I think will make market participants more comfortable about using us in the future,” Sun told Bloomberg on June 5.

What do you think about the Tron stablecoin USDD and its fight against the market carnage? Let us know what you think about this subject in the comments section below.

Tron Now Commands the Third-Largest TVL in Defi — Network’s Stablecoin USDD Confronted by Skepticism

30/05/2022 by Idelto Editor

This week the Tron blockchain has become the third-largest network in terms of total value locked (TVL) in decentralized finance (defi) protocols. Interestingly, 48.19% of the TVL is held by the defi protocol Justlend, an application that’s similar to Anchor Protocol as it offers more than 20% APY for USDD deposits. Amid Tron’s TVL rising, the network’s stablecoin USDD has been confronted by skeptics over the similarities USDD holds with Terra’s UST.

Tron Takes the Third-Largest Position in Terms of Total Value Locked in Decentralized Finance Protocols

On May 30, 2022, Tron managed to become the third-largest defi blockchain in terms of total value locked. At the time of writing, Tron’s TVL in defi is $5.94 billion, which is just below the Binance Smart Chain (BSC) TVL and above the Avalanche (AVAX) TVL.

Amid the Terra LUNA and UST fallout, on May 12, 2022, Tron’s TVL was $3.97 billion and the blockchain was ranked number five in terms of TVL size by chains. On that day, Tron’s TVL was down 16.16% lower than it was on May 5, but after the Terra fiasco subsided, Tron claimed the third position in terms of TVL in defi.

This month, Tron’s defi TVL increased 45.22% and over the last seven days, as it has risen by 13.73%. Tron’s TVL is dominated by a defi protocol called Justlend, as 48.19% of Tron’s aggregate held in defi is hosted on the Justlend application. Justlend has $2.86 billion total value locked and it has increased a great deal since May 21.

$1.08 billion was added to Justlend since May 21, as the protocol’s TVL increased by 58% since then. Furthermore, Justlend was audited by the blockchain security company Certik. Similar to Anchor, USDD deposits on Justlend offer 23.55% APY at the time of writing.

Other notable defi applications on Tron, in terms of TVL balances, include Juststables and Sunswap. Juststables has a TVL balance of $1.41 billion and Sunswap has just under a billion in total value locked. USDD has also managed to become the ninth-largest stablecoin among all the fiat-pegged tokens in existence.

The Tron stablecoin’s market valuation today is $603 million and it has seen $179.6 million in 24-hour global trade volume. Statistics from Cryptocompare indicate that USDT and USDC are USDD’s top two trading pairs. Tron’s new algorithmic stablecoin USDD and the APY on Justlend is arguably eerily similar to the products once offered by Do Kwon, Terraform Labs (TFL), and Anchor team.

Tron’s USDD Stablecoin Faces Numerous Critics and Skeptics

A number of critics have said “USDD is doomed to fail,” and there’s a litany of criticism about the project being so similar to UST. Data scientist Bennett Tomlin has gone as far to say that USDD is not an algorithmic fiat-pegged token concept.

“As far as I can tell USDD is not an algorithmic stablecoin,” Tomlin said. “The only interaction that the TRD members can do is to burn TRX to get USDD. I see no contract to go the other way, and no algorithm adjusting either mechanism, except that minting depends on oracle price of TRX.” Tomlin added:

Like nominally the algorithm in Terra was the mechanism which refilled the AMM in the market module (they lied about this a bunch). This doesn’t seem to have an algorithm at all.

Despite the criticism and speculation, Tron has managed to be a top contender in the world of decentralized finance. Furthermore, Tron’s native token tron (TRX) has managed to climb to the 14th position in terms of the largest market caps in the crypto economy.

This is because while bitcoin (BTC), ethereum (ETH), and many others printed weekly losses for nine weeks in a row, Tron managed to stave off most of the market carnage. TRX is up 14.7% during the last two weeks and 30.5% against the U.S. dollar over the last month.

What do you think about Tron becoming the third-largest in decentralized finance today in terms of TVL? Let us know what you think about this subject in the comments section below.

Tron DAO Reserve Acquires Millions in TRX, Bitcoin, and Tether to Safeguard USDD

15/05/2022 by Idelto Editor

Seven days ago, Bitcoin.com News reported on the Tron DAO Reserve purchasing $38 million in tron to safeguard the network’s stablecoin USDD. Since then and since the terrausd (UST) de-pegging event, the Tron DAO Reserve has continued to purchase large quantities of digital assets to bolster the project’s reserves. In addition to the tron purchases, the organization has been adding stablecoins and bitcoin into the mix as well.

While Terra’s Stablecoin Imploded, Tron’s Algorithmic Dollar-Pegged Crypto Project Purchases Millions Worth of Tron, Bitcoin, and Tether to Defend USDD

During the past week, all eyes have been focused on the Terra blockchain and its native crypto assets LUNA and UST. Both coins divebombed significantly in USD value and more than $46 billion in value disappeared from the crypto economy in roughly three days. Amid all the carnage, the Tron DAO Reserve has continued to purchase crypto assets for its digital currency-based forex reserves. On May 7, Bitcoin.com News reported on Tron’s founder Justin Sun and the Tron DAO Reserve purchasing $38 million in tron (TRX).

Since then the project has continued to buy crypto amid the market carnage that took place because of the UST fallout. Tron’s stablecoin USDD is also an algorithmic dollar-pegged crypto asset that has similarities to Terra’s UST. After the purchase of 504.6 million tron (TRX), the Tron DAO Reserve tweeted that the team aims to “guard the overall blockchain industry and market, prevent panic trading caused by financial crises, and mitigate severe and long-term economic downturns.” The Tron DAO Reserve (TDR) further added:

We also manage the permissions of USDD as its early custodian and ensure its price stability with reserves.

After the 504.6 million tron purchase, the TDR continued to add funds into the reserve this past week. “To safeguard the overall blockchain industry and crypto market, Tron DAO Reserve have bought 500 BTC with an average price $31,031.35 for $15,515,675,” TDR detailed on May 10. The same day, the TDR said it purchased 595,729,832 tron for $45.6 million. While the crypto market was chaotic that day the TDR team noted “USDD holds steady in today’s market volatility.”

Buying MOAR! https://t.co/DVG3sIWlic

— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) May 12, 2022

The following day on May 11, the TDR team tweeted: “To safeguard the overall blockchain industry and crypto market, [TDR] have bought 1,000 BTC with an average price of $30,096 for $30,096,000.” Following that purchase, the TDR organization bought 1,467,612,695 TRX for $97 million for the reserves. The TDR then started to buy stablecoins after the $97 million worth of tron was purchased. The TDR team explained on May 12:

To safeguard the overall blockchain industry and crypto market, [TDR] have bought 100,000,000 USDT with an average price of $0.982 with $98,200,000.

The TDR team did not stop there and has continued to purchase more coins to safeguard the Tron network’s stablecoin USDD. The TDR said on May 12, it purchased 200 million USDT for $0.985 per unit which added up to around $197 million in U.S. dollars. The Tron-based stablecoin reserve team then bought 1,249.57 BTC at an average price of around $29,394.

Tron’s Justin Sun ‘Still Believes in Algorithmic Stablecoins’

Currently, on Saturday, May 14, 2022, the USDD stablecoin has a market valuation of around $272.36 million and there are 271,438,207 USDD in circulation at the time of writing. During the past day, USDD has seen $85.5 million in global trade volume and the crypto asset is 156th largest market cap.

Similar to the Terra blockchain’s mechanism of burning LUNA to produce UST, to mint a single USDD it costs $1 worth of tron to issue the crypto asset. This means it can grow as large as the market allows it as it allows anyone to mint the stablecoin in a permissionless manner. However, with the market turmoil that took place because of the UST de-pegging event, it is safe to say the crypto community is leery of algorithmic stablecoin assets.

Despite the issues this past week, Tron founder Justin Sun talked to Coindesk’s Tracy Wang and he said that he is still optimistic about the algorithmic stablecoin model. “I still believe in algorithmic stablecoins,” Sun explained to Wang during a Zoom interview.

What do you think about the USDD stablecoin project created by the Tron team? What do you think about the TDR’s purchases this week? Let us know what you think about this subject in the comments section below.