TronDAO representatives made things clear, as USDD price on exchanges is plummeting again
TronDAO shared a brief Q&A session on the status of USDD-supporting reserves and other business plans needed to keep its liquidity ecosystem healthy.
No, USDD is not de-pegged
On its official Twitter account, TronDAO representatives highlighted that the ongoing drop of USDD’s valuation below $0.97 should not be interpreted as a de-peg.
Such fluctuations are unavoidable due to market volatility, as USDD is a decentralized stablecoin that is not backed by bank money and redemption balances. Thus, a market volatility rate around 3% is acceptable for this product.
After recent injections, USDD becomes virtually the most over-collateralized decentralized stablecoin in the Web3 segment. Currently, it is backed by a liquidity pool of 1,080,000,000 USDC; 10,874,566,176 TRX; 14,040.6 BTC and 140,013,886 USDT.
As such, the USDD collateralization rate is above 320%, as covered by U.Today before. At the same time, some USDD and TRX positions were liquidated amid volatility spikes.
Collaborations with CEXes and DEXes are in sight
Today, June 18, 2022, the price of USDD jumped to $0.98 before plunging again below $0.965. TronDAO stresses that, despite such fluctuations, TRON DAO Reserve has a “very healthy” balance sheet.
The USDD pools on the Sun.io DeFi protocol have over $200 million in liquidity, which is more than enough for its normal operations.
As such, TronDAO is going to score new partnerships with both centralized and decentralized cryptocurrency trading services, its team says.
