No, USDD Is Not De-pegged Below $0.97, Tron DAO Insists


article image

Vladislav Sopov

Track live crypto price of 10000+ coins!


TronDAO representatives made things clear, as USDD price on exchanges is plummeting again

Contents

TronDAO shared brief a Q&A on the status of reserves backing USDD and further plans for activities necessary to keep its liquidity ecosystem healthy.

No, USDD is not de-pegged

On its official Twitter account, TronDAO representatives highlighted that the ongoing drop of USDD’s valuation below $0.97 should not be interpreted as a de-peg.

Such fluctuations are inevitable due to market volatility, as USDD is a decentralized stablecoin that is not backed by a banking mint and redemption balances. As such, a market volatility rate around 3% is acceptable for this product.

Related:  Bitcoin aSOPR Fails Retest Of Historical Bull-Bear Junction

After recent injections, USDD becomes virtually the most over-collateralized decentralized stablecoin in the Web3 segment. Currently, it is backed by a liquidity pool of 1,080,000,000 USDC; 10,874,566,176 TRX; 14,040.6 BTC and 140,013,886 USDT.

Ads

As such, the USDD collateralization rate is over 320%, as covered by U.Today previously. At the same time, some USDD and TRX positions were liquidated amid volatility spikes.

Collaborations with CEXes and DEXes are in sight

Today, June 18, 2022, the price of USDD jumped to $0.98 before plunging again below $0.965. TronDAO stresses that, despite such fluctuations, TRON DAO Reserve has a “very healthy” balance sheet.

USDD pools on Sun.io DeFi protocol have over $200 million in liquidity, which is more than sufficient for its normal operations.

As such, TronDAO is going to score new partnerships with both centralized and decentralized cryptocurrency trading services, its team says.




Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: