Tron’s USD-pegged stablecoin USDD might be the most “over-collateralized” asset right now
TronDAO is expanding its liquidity injections into the reserve pool to support its new stablecoin, USDD. It seems that its guarantee rate has increased by almost 60% since its launch.
With another $300 million in USDC, TronDAO’s collateral rate sets new record
As per the official announcement shared by TronDAO on its Twitter account, it added another portion of liquidity into USDD reserves. A total of $300 million in USD Coin (USDC) equivalent was transferred to its reserves pool.
After this transfer, the collateral rate (the ratio of the value of a stablecoin’s liquid supply to its reserves) crossed the 300% mark.
Upon launch on June 5, 2022, USDD creators claimed that the stablecoin went live with a collateral rate of 200%. Its documentation guarantees a minimum collateral rate of 130%.
Along with this, despite the USDD unpeg, the APY on the USDD/USDT pair in the Sun.io protocol has almost reached 50%. This is almost 150% higher than what Anchor Protocol had offered before its collapse.
USDD still de-pegged despite aggressive liquidity injections
This accelerated liquidity injection spree, however, is still failing to recover the USDD peg to the price of the U.S. Dollar. In the last two days, its price increased from $0.95 to $0.977.
As covered by U.Today previously, SE Justin Sun and TronDAO protect the USDD design from attacks for the fifth day in a row. The stablecoin retired on June 13, 2022, just eight days after its release on the mainnet.
To support USDD, its issuers launched a massive program of buybacks and liquidity injections.
