TronDAO representatives made things clear, as USDD price on exchanges is plummeting again
TronDAO shared a brief Q&A on the status of USDD-backed reserves and further plans for the activities needed to keep its liquidity ecosystem afloat.
USDD is not de-pegged below $0.97, Tron DAO insists
On his official Twitter account, a representative of TronDAO emphasized that the USDD valuation falling below $0.97 should not be interpreted as a drop in price.
Such fluctuations are inevitable due to market volatility, as USDD is a decentralized stablecoin that is not backed by bank funds and redemption balances. Therefore, a market volatility rate of around 3% is acceptable for this product.
Certain % of volatility is unavoidable. Currently, the market volatility rate is within +- 3%, an acceptable range. We will watch the market very closely and act accordingly.
— TRON DAO Reserve (@trondaoreserve) June 17, 2022
After recent injections, USDD has become virtually the most over-collateralized decentralized stablecoin in the Web3 segment. Currently, it is backed by a liquidity pool of 1,080,000,000 USDC; 10,874,566,176 TRX; 14,040.6 BTC and 140,013,886 USDT.
As such, the USDD mortgage rate is over 320%. At the same time, a number of USDD and TRX positions were liquidated amid a spike in volatility.
Today, June 18, 2022, the USDD price surged to $0.98 before falling below $0.965 again. TronDAO emphasized that, despite such fluctuations, TRON DAO Reserve has a “very healthy” balance sheet.
USDD pools on the Sun.io DeFi protocol have over $200 million in liquidity, which is more than enough for its normal operations. Its team said that TronDAO will forge new partnerships with centralized and decentralized cryptocurrency trading services.
- Tether, USDT Issuer, Publishes An Official Statement Condemning False Rumors
- The Second Biggest Stablecoin Now Supports The Polygon Network