TRON’s USDD Stablecoin Losing Peg as TRX Price Slumps
The unfortunate tales of algorithmic stablecoins losing their pegs continue. This time, it’s TRON’s USDD that’s in the spotlight, trading at 2% below dollar parity.
- Following the UST-Terra fiasco, another algorithmic stablecoin seems to be at risk of losing its peg.
- The case in point is USDD which runs on TRON’s blockchain and is using a similar algorithm to UST, but it’s tied to TRX.
- At the time of this writing, the cryptocurrency is trading at $0.98 – around 2% below its intended price.
- This comes at a time when TRX’s price is also taking a beating. Right now, the altcoin trades for about a 6% daily loss, having recovered from a tumultuous morning session when it lost even more.
- Despite all of the above, Justin Sun remains positive and anticipates the peg to be reestablished within the next 24 hours.
USDD/USDT sunIO 2pool have recovered back to 55/45 balance. I believe it will be back to 50/50 in 24 hours with 247% collateralization rate. You might see the fear here but I see 2% profit opportunity.
#USDD/#USDT https://t.co/OE3UOaRzZN 2pool have recovered back to 55/45 balance. I believe it will be back to 50/50 in 24 hours with 247% collateralization rate. You might see the fear here but I see 2% profit opportunity pic.twitter.com/2PMUPZ4WhO
— H.E. Justin Sun (@justinsuntron) June 14, 2022
- As CryptoPotato reported yesterday, TRON DAO’s reserve will be deploying $2 billion to protect the USDD peg.
