In order to continue strengthening its algorithmic stablecoin USDD, the TRON DAO Reserve has tapped another institution to mint and burn it as a collaborator – Wintermute.
The latter has extensive experience with the digital asset universe and operates as an established global algorithmic trading firm.
USDD’s Recent Issues
Algorithmic stablecoins garnered people’s attention a few months back when Terra’s UST lost its peg against the dollar and literally burst into flames. In a matter of days, its value, as well as the price of the other Terra native coin – Luna – plummeted to virtually zero.
TRON’s take on the algorithmic stablecoin industry – USDD – also came under fire, at least according to Justin Sun and the team. It started losing its dollar parity while TRX also began decreasing in value in June.
However, the TRON DAO Reserve acted by withdrawing billions of TRX from centralized exchanges and poured billions of dollars into defending the peg.
It seems that the moves have helped as USDD reclaimed its lost ground and survived the subsequent market crash. TRON noted that USDD had over $2.3 billion in backing and a market cap of over $700 million as of the end of July.
The organization behind the stablecoin has made another step towards defending the asset and enhancing its capabilities by partnering with Wintermute.
Wintermute Joins USDD
The press release shared with CryptoPotato informed that Wintermute has become the ninth member and whitelisted institution to mint and burn the USDD stablecoin.
The company is a large algorithmic trading firm with previous experience with crypto. It has over $5 billion in average daily trading volume, facilitates OTC trading, and provides liquidity for centralized and decentralized exchanges.
The partnership between the Reserve and Wintermute will see the latter advise the TDR and “make recommendations to enhance, develop, and supply general aid for the USDD network,” the statement said.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: