Tron DAO Reserve deploys more assets as USDD depegs and TRX falls 18%
The general crypto Monday has started the week with a plunge, but for TRON, things have somehow started to get worse after the Tron DAO Reserve was forced to deploy resources after its stablecoin de-pegged.
The USDD stablecoin started the week by temporarily depeging to as low as $0.97; something that caused a corresponding reaction affecting TRX price which had dropped by 18.68% to $0.06291 at the time of writing.
At the time of writing, the price of the USDD stablecoin had not yet regained its Dollar parity and was trading at $0.9892.
Justin Sun is ready to fight for the stability of USDD
The head of Tron Foundation, Justin Sun, has stated that he is ready to deploy as much as $2 billion to keep the USDD pegged to the dollar.
So far, the TRON DAO has deployed 700 million USDC coins to try and keep the USDD pegged to the dollar.
700 million USDC has been injected into @trondaoreserve for #USDD peg. Well done! https://t.co/r11PnBte4g
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) June 13, 2022
The current situation with the USDD stablecoin seems to be following a similar trajectory to Terra’s TerraUSD (UST) stablecoin.
When the UST first de-pegged, Do Kown announced that they would be deploying more capital to try and keep the UST pegged to the US Dollar.
lads pic.twitter.com/Crgv3GFD6O
— R.I.P. Old Kanye (@adisonfarrel) June 13, 2022
Avoiding Terra’s path
Justin Sun had earlier on said that the USDD would be overcollateralized at 130% to avoid going down the same path that the TerraUSD used.
Sun has gone ahead to also say that TRON DAO will deploy $2 billion to fight back the negative funding on Binance. He also warned of an impending short squeeze on TRX tokens over the next few days or weeks.
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