On the morning of June 13, the value of the asset was momentarily down to $0,97

USDD stablecoin lost its peg to the dollar

13.06.2022 - 09:25

308

1 min

What’s new? On June 13, the algorithmic stablecoin USDD by TRON issuer temporarily lost its peg to the US dollar and dropped to $0,97. Earlier, TRON announced a plan to implement an “over-collateralized” model under which the reserve for the asset is to be set at 130% of the total amount of coins issued.

USDD value chart on Binance

What events preceded it? The new collateral model is designed to protect USDD from the rate crash that happened earlier with the TerraUSD (UST) stablecoin. The company’s future plans include the creation of a $10 billion reserve to support the project in the long term. The reserve will be based on a basket of fiat-collateralized stablecoins and coins such as BTC and TRON (TRX).

On June 7, TRON DAO Reserve (TDR), a decentralized autonomous organization, transferred 100 million USDT from its reserves to crypto exchange Binance to buy bitcoins. With these funds, TDR added another 1000 BTC to secure USDD.

As of 09:20 UCT, the value of 1 USDD is $0,99, the stablecoin has not yet regained parity with the US dollar.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy