TRON Deploys Another $20M to Safeguard the Crypto Market

The TRON DAO Reserve tweeted a new update on Friday, announcing that it had purchased USDD worth $10 million and added $10 million worth of TRX to its reserves to safeguard the overall blockchain industry and crypto market. total 20 million for today! https://t.co/Hcaq58TZhg — H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) July 8, 2022 TRON’s Attempt at an Algorithmic Stablecoin The algorithmic stablecoin USDD is an effort by TRON. It draws inspiration from Terra’s UST, whose abrupt collapse in May after losing its peg to the dollar wiped out the whole industry. It draws inspiration from Terra’s UST, which suffered a dramatic collapse in May. It caused an industry-wide wipeout after losing its peg to the dollar. Since the TRON DAO Reserve collateralized USDD, it shouldn’t, in theory, experience the same fate. As per TRON’s website, the DAO holds $2.2 billion worth of collateral in TRX, BTC, USDT, and USDC, and the total USDD supply is $723.3 million, making the stablecoin 316.2% overcollateralized. Preserve USDD’s Dollar Parity The TRON DAO Reserve dropped $2 billion last month as it fought off short traders betting against TRX to preserve USDD’s dollar parity. USDD spent a week below peg, trading as low as $0.93 but has recovered to just under a dollar. The TRON DAO Reserve has added to its USDD and TRX holdings several times since the depeg event. With the introduction of USDD, which it claimed would grant users “financial freedo...