14 Jun 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.
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