USDD, the stablecoin of the Justin Sun family and the Tron blockchain, continued to lose peg on December 12 and bottomed since the collapse of the Terra ecosystem.
USDD encounters a change, sets the lowest bottom in history
According to Coingecko, USDD plunged and touched close to the $0.9695 mark at the beginning of December 12. This is the most severe peg loss of the “Justin Sun-grown” coin since the historic crash of LUNA-UST.
🤑#USDD Collateral Ratio is OVER 200% now! Assets with a combined value of over $1.45 billion are safeguarding the #USDD peg!
🧐You can check our collateral assets at all times on https://t.co/CZjLJsQHQW and https://t.co/qOAE7gYIaA.
Keep #BUIDLing!💪 pic.twitter.com/ihIThpZzVF
— USDD (@usddio) December 12, 2022
This is not the first time that USDD has “meeted a turn”. A month ago, in the heart of the FTX disaster, the dominant stablecoins in the market such as USDT and USDC were also shaken, but quickly regained their positions. USDD was no exception, deviating from the peg to $0.98.
While USDD loses its price balance, the share of this stablecoin in the USDD/3CRV liquidity pool on Curve continues to increase. USDD currently accounts for 86% of total pool liquidity of $34.5 million, up from 80% measured on Nov. The loss of the peg reflects users’ tendency to swap USDD for other stablecoins like DAI, USDC, and USDT.
USDD (Decentralized USD) is an algorithmic stablecoin issued by TRON (TRX) with the ambition of becoming stablecoin 3.0. TRON launched USDD in May 2022, just days before LUNA-UST evaporated. USDD works like UST, 1 USDD equals $1. Therefore, creating panic in the investor community, fearing that USDD will be the second UST to fail.
Deploying more capital – steady lads https://t.co/55pra5wQMi https://t.co/CexyaBy2hx
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) December 12, 2022
In an effort to calm the market, Justin Sun posted a forum claiming to be raising funds to protect USDD and re-emphasizing the algorithmic stablecoin has a collateral ratio of up to 200%.
Up to now, USDD is hovering around the $0.98 mark, has increased slightly but has not been able to recover the $1 peg. Meanwhile, TRX price is still at the red floor and shows no sign of stopping.
Read more:
- TRONDAO Reserve Is In Charge Of Permissions For USDD
- TronDAO Representatives Made Things Clear, As USDD Price On Exchanges Is Plummeting Again