TRONDAO Reserve is in charge of permissions for USDD
TRON DAO Reserve, the watchdog of stablecoin USDD, said it had increased the supply of 700 million USDC on Tron to the current $2.5 billion. It said it did this to “safeguard the overall blockchain industry and crypto market.”
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) June 13, 2022
Tron defends the ecosystem with another $700M as USDD stablecoin drops slightly beneath $1
Amid the current market sell-off, Tron DAO Reserve shared that 700 million USDC (nearly $700 million worth) has been injected into TRON DAO Reserve to defend the USDD peg. It was also stated in a tweet that another $100 million more USDC was deposited on Binance to buy more TRX.
Tron was under siege when Tron founder Justin Sun reported yesterday that the funding rate of a TRX short sale on Binance had dropped to a negative 500% APR. This shows large numbers on Binance. As a result, he stated that the Tron DAO Reserve had deployed $2 billion to protect the ecosystem.
TRONDAO Reserve is responsible for licensing USDD while ensuring price stability and decentralization through collateralizing USDD with its reserves. On its official Twitter account, TRON DAO Reserve also states that its job is to protect the blockchain industry and the overall cryptocurrency market, as well as prevent panic trading caused by the financial crisis. and mitigate a severe and long-term economic downturn.
Previously, Tron announced that they would significantly increase USDD funding following the May failure of Terra’s UST. To decentralize USDD excessively, many reserves of cryptocurrencies and other stable coins have been collected. Justin Sun, the founder of Tron, recently launched a poll to seek opinions on whether TronDao Reserve should buy ETH as a reserve.
Meanwhile, Tron’s stablecoin, USDD, is trading at $0.97, down 0.95% over the past 24 hours. USDD, which shares similarities with Terra’s UST, is also an algorithmic stablecoin launched on May 5 and is meant to maintain parity with the dollar.
- TRON (TRX) Transaction Surges, Investors Cashing In On Justin Sun’s Resignation As TRON CEO?
- TRON Founder Justin Sun Won A Collection Of NFT As The Highest Bidder In A Sale Of Digital Artwork By Leading Artist Pak