TRONDAO Reserve is in charge of permissions for USDD
TRON DAO Reserve, which oversees the USDD stablecoin, said it has increased the 700 million USDC supply on Tron to the current $2.5 billion. He says he did this to “protect the entire blockchain industry and crypto market.”
Amid the current market sell-off, Tron DAO Reserve shared that 700 million USDC (nearly $700 million worth) has been injected into TRON DAO Reserve to defend the USDD peg. It was also stated in a tweet that another $100 million more USDC was deposited on Binance to buy more TRX.
As previously reported by U.Today, Tron has come under siege as Tron founder Justin Sun announced yesterday that the TRX short-sell funding rate on Binance has fallen to a negative APR of 500%. This indicated massive shorts on Binance. He therefore said that the Tron DAO reserve has deployed 2 billion USD to defend the ecosystem.
TRONDAO Reserve is in charge of permissions for USDD while ensuring price stability and decentralization through the collateralization of USDD with its reserves. On its official Twitter account, the TRON DAO Reserve also declares that its job is to defend the overall blockchain industry and crypto market, as well as to prevent panic trading induced by financial crises and minimize severe and long-term economic downturns.
USDD drops slightly below $1
Tron earlier announced that it would significantly increase the amount of capital backing USDD after Terra’s failed UST in May. To supersize the USDD, a reserve of cryptocurrencies and other stablecoins has been built up. Justin Sun, the founder of Tron, recently launched a poll asking for opinions on whether TronDao Reserve should buy ETH as a reserve.
Meanwhile, Tron’s stablecoin, USDD, was trading at $0.97, down 0.95% in the last 24 hours, per CoinMarketCap data. USDD, which shares similarities with Terra’s UST, is also an algorithmic stablecoin launched on May 5 and is meant to maintain parity with the dollar.
