“TronDAO” representatives: there is no separation of the stablecoin USDD below $0.97
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Answer “TronDAO” representatives: there is no separation of the stablecoin USDD below $0.97
TronDAO shared a brief Q&A about the state of the reserves supporting USDD and additional plans for activities necessary to maintain a healthy liquidity ecosystem.
USDD is not decoupled:
On their official Twitter account, TronDAO representatives confirmed that the continued decline in the USDD valuation below $0.97 should not be interpreted as a decoupling.
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Such volatility is inevitable due to market volatility, as USDD is a decentralized stablecoin that is not backed by bank minting and redemption balances.
As such, a market volatility of around 3% is acceptable for this product.
After the recent injections, USDD has practically become the most leveraged decentralized stablecoin in the Web3 sector.
Currently, it is backed by a liquidity pool of 1,080,000,000 USDC, 10,874,566,176 TRX, 14,040.6 Bitcoin, and 140,013,886 USDT.
As such, the USDD guarantee rate is over 320%.
Meanwhile, some USDD and TRX positions were liquidated amidst heavy volatility.
Collaboration with CEXes and DEXes looms:
Yesterday, June 18, 2022, the price of the USDD stablecoin jumped to $0.98 before dropping back below $0.965.
TronDAO confirms that despite these volatility, TRON DAO Reserve has a very healthy balance sheet.
The USDD pools on the Sun.io protocol have more than $200 million in liquidity, which is more than enough for their normal operations.
As such, TronDAO will register new partnerships with centralized and decentralized cryptocurrency trading services, its team says.
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