Tron’s USDD Stablecoin Loses its Peg, $700M Injected to Recover

After the news that TronDAO has purchased $50 Million in Bitcoin And TRX to add to Its USDD reserves, the peg of Tron’s USDD lost about 3% today with the lowest price at $0.97. In light of this, TronDAO has vowed to deploy $2 billion in USDC to support a re-peg. TronDAO Injects $700M to Re-Peg its USDD Earlier today, Tron’s founder Justin Sun hinted that the blockchain network’s algorithmic USDD stablecoin lost its peg brought about by a negative funding rate for TRX shorts on Binance which amounted to -500% APY. As a result, USDD lost about 3% of its value to trade down to $0.97. Sun further opined that the condition will be resolved shortly and the de-peg won’t even last for 24 hours. To facilitate the re-peg, he said that $2 billion in TronDAO reserves will be poured in to fight the Binance shorts funding rates. Funding rate of shorting #TRX on @binance is negative 500% APR. @trondaoreserve will deploy 2 billion USD to fight them. I don't think they can last for even 24 hours. Short squeeze is coming. pic.twitter.com/VRExM6UK70 — H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) June 13, 2022 A few minutes later, he updated saying that about $700 million worth of USDC has already been deployed as part of the $2 billion reserves set aside to support USDD. At the time writing, USDD somewhat recovered and is currently trading at $0.99 from its earlier $0.97 levels. 700 million USDC has been injected into @trondaoreserve for #USDD peg....