Tron DAO bought another $500 million worth of the stablecoin USDC on Tuesday to further expand its reserve assets pool and salvage confidence in its algorithmic stablecoin called Decentralized USD (USDD).
Tron DAO confirmed the latest acquisition in a Twitter post.
Over the last month, Tron has continued to grow its assets rapidly so it controls more collateral than the total value of its stablecoin supply. This approach, it believes, would prevent USDD from crumbling under intense pressure.
Still, the USDD stablecoin has slightly de-pegged against the dollar amid a major slump in broader crypto markets. USDD dipped as low as $0.974 Tuesday morning before recovering to $0.98 at the time of writing, according to CoinGecko data.
At the moment, USDD’s market capitalization is slightly over $700 million, whereas it holds more than 1.5 billion in collateral reserves. According to Tron DAO’s website, it currently holds 1 billion USDC, 140 million USDT, and 1.9 billion tron ($110 million) and 14,000 bitcoin ($310 million).
Chawla, V. (2022, June 14). Tron Dao Reserve adds another 500 million USDC to help USDD Stablecoin Peg. The Block. Retrieved June 20, 2022, from https://www.theblock.co/linked/151936/tron-dao-reserve-adds-another-500-million-usdc-to-help-usdd-stablecoin-peg?utm_source=cryptopanic&utm_medium=rss