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
The USDD has been trading below one US dollar for more than a week and on Sunday the USDD hit an all-time low at $0.928 per unit. The following day on Monday, the stablecoin traded 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, at around $696.28 million as of Monday evening at 7:00 p.m. ET. The stablecoin recorded a global trading volume of around $83 million and top USDD exchanges on Monday include Kucoin, Huobi Global, Poloniex, and Pancakeswap version two (V2).
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 is trading for less than $1 per unit, the official Tron DAO Reserve Twitter account reports that the USDD crypto asset has not been de-indexed. “Is the USDD de-indexed? » Twitter account recently asked. “No. USDD is a decentralized stablecoin that relies on an on-chain mechanism and collateralized assets, unlike the centralized stablecoin ex USDC, which is pegged to the USD in a very close spread by bank money and redemption Tron DAO Reserve says a certain percentage of volatility is “inevitable” 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 Multi-Chain Expansion
Tron DAO reserve too discussed “massive short positions” that bet against tron (TRX), the native crypto asset of the blockchain. USDD is not the only stablecoin in the crypto industry that has suffered from a certain percentage of volatility. Abracadabra’s decentralized finance (defi) protocol stablecoin MIM briefly slipped to $0.91 when bitcoin (BTC) slipped to $17,600 per unit two days ago. Since then, Abracadabra’s Magic Internet Money (MIM) has returned 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 for the USDD, the Tron DAO reserve does not seem to transpire below the parity of $1. Tron DAO Reserve noted in the recent Twitter thread that it aims to be the top dog in decentralized stablecoins. “We will focus on collaborations with different cefi/defi platforms and multi-channel expansion. Our goal is to offer the best decentralized stablecoin ever available on the market,” the Tron DAO reserve Twitter thread concludes.
