Tron-backed algorithmic stablecoin Decentralized USD (USDD) has slipped from its peg to the U.S. dollar and is now trading at $0.98, making the second time the stablecoin lost its peg since it was first launched earlier this year.
In June, the stablecoin saw its value dip to $0.96 before it recovered. USDD’s price drop comes as liquidity for the stablecoin plunged on the Ethereum-based decentralized platform Curve, where USDD is traded against three other stablecoins within a liquidity pool.
Currently, more than 80% of the pool’s funds are held in USDD alone, indicating traders are selling it for the other stablecoins, which are USDT, USDC, and DAI. USDD is a cryptocurrency-backed stablecoin that can be issued by the Tron DAO reserve with TRX and other assets as collateral.
The Tron DAO Reserve claims USDD is collateralized up to 200%, meaning that for each stablecoin, there is $2 worth of collateral, which can be in TRX, BTC, or other centralized stablecoins.
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