Tron DAO Reserves Bought $38M In TRX To Protect USDD

The Tron DAO reserves bought $38 million in TRX to protect the USDD stablecoin after it recently went live and got listed on a number of decentralized finance protocols so let’s read more today in our latest Tron news.

The Tron DAO reserves bought about $38 million in TRX to back the algorithmic stablecoin as the project aims to leverage a decentralzied forex reserve much like Terra’s UST reserves. The UST reserve system is becoming a popular scheme and the USDD stablecoin project is following this pattern. The project has a number of partners so far and USDD is listed on Kyberswap, Sunswap, Curve Finance, Uniswap, and Ellipsis.

According to tronscan.org there are about 211,245,005 USDD and the statistics show that Uniswap v3 is the most active exchange to buy and sell USDD. While the market cap is small compared to UST it still fares great for the past two days. While TerraUSD saw $990.3 million in the past day and USDD saw $2.31 million during the past day. Its market valuation is bigger than the Gemini dollar’s $199.5 million market cap. The Tron founder Justin Sun announced that the team purchased 504,600,250 TRX at an average price of 0.7727 per unit and the purchase will be used as a reserve asset to protect the blockchain industry and the crypto market.

Even though the decentralized stablecoins sound cool, in theory, there are some concerns and questions about whether or not they can maintain a stable peg for as long as they exist. Of course, some centralized stablecoin projects in the past failed and MakerDAO’s DAI stablecoin was tested during the Black Thursday event in 2020. the OUSD Stabelcoin issuer Origin Protocol also suffered from a flash loan attack and the coin lost its peg. In the first week of April, the Waves-based stablecoin Neutrino also dropped from the pegged dollar price.

A year ago, the stablecoin FEI also dropped below the dollar for a short while and so far a number of the projects rebounded after the lost peg and the stablecoin projects maintained da stable peg. The Tron DAO reserve purchase was worth $38.99 million and the TRDX purchase followed the acquisition of the $1.4 billion worth of BTC by the Luna Foundation Guard. The foundation holds about $100 million worth of AVAX and 80,394 BTC. The Tron DAO also partnered with institutions that are deemed whitelisted Tron DAO members and the reserve partners included Alameda Research, Poloniex, and Amber Group while Tron’s DAO acts as a USDD early custodian.

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• Source: https://www.dcforecasts.com/tron-news/tron-dao-reserves-bought-38m-in-trx-to-protect-usdd/