TRON DAO Added US$500 Million in USDC to its Reserve

TRON DAO announced that it has added US$500 million in USDC to its reserve to support the dollar parity of its algorithmic stablecoin, but USDD has been out of sync with the greenback for nearly two days. USDD maintains its peg to the dollar by an algorithmic method that involves burning TRON’s native token TRX – a model similar to the Terra UST (now USTC) stablecoin. The TRON DAO Reserve states that USDD is backed by Bitcoin, USDT, USDC, and TRX to 310 percent. 500 million #USDC more to the @trondaoreserve! Well done! #USDD https://t.co/XnGw0LeJA5 — H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) June 14, 2022 Tron’s USDD Stablecoin Remains Below $1 Parity Following the event within the Terra blockchain ecosystem, many cryptocurrency supporters are carefully monitoring Tron’s stablecoin USDD. The algorithmic stablecoin fell to $0.977 per unit on June 13 as crypto markets experienced massive daily losses. The bitcoin (BTC) price dipped below $21K during Monday’s evening trading sessions but remained barely over the all-time high set in 2017. Although crypto prices improved slightly on Tuesday, the USDD remains below the $1 parity. Proximity Labs Researcher “Resdegen” Objected However, a Twitter user named “Resdegen” from Proximity Labs pointed out that the promised USDD collateralization includes burned TRX, multiplying the reserve account. According to resdegen’s calculations, USDD was collateralized at 73 percent before TRON DAO p...