Tron's USDD stablecoin has lost its peg as its price dipped to $0.97, sparking fears of another UST collapse.<\/p>\n
The Tron-based algorithmic stablecoin launched<\/a><\/strong> on May 5, and its market cap currently stands at roughly $708 million. Tron founder Justin Sun said USDD would be over-collateralized by low-volatile assets like USDT<\/a><\/strong>,\u00a0USDC<\/a><\/strong>,\u00a0Bitcoin,<\/a> to avoid a repeat of UST's collapse.<\/p>\n The Tron DAO Reserve<\/a> shows the USDD supply at $725.3 million, with collateral consisting of TRX, BTC, USDT, and USDC totaling $1.4 billion in value \u2014 equating to a ratio of 200%.<\/p>\n Over the last seven months, USDD has mostly maintained its dollar peg besides de-pegging briefly on June 14,<\/a> when it traded at $0.97.<\/p>\n According to CryptoSlate data, the USDD algorithmic stablecoin has lost its dollar peg again, as its current price sits at $0.978.<\/p>\n In addition, USDD is currently imbalanced on Curve as it accounts for 82% of the USDD\/3CRV pool.<\/p>\n USDD's recent depeg has spread fears and speculations about the collapse of another algorithmic stablecoin. Since the UST collapse of May 9, Wave-backed USDN<\/a> has lost its dollar peg below $0.8.<\/p>\n USDD falling below its dollar peg has led to fear in the market causing Tron's native TRX token to fall 3.5% over the last 24 hours.<\/p>\n Justin Sun said Tron is deploying more capital to restore the peg.<\/p>\n Deploying more capital – steady lads https:\/\/t.co\/55pra5wQMi<\/a> https:\/\/t.co\/CexyaBy2hx<\/a><\/p>\n — H.E. Justin Sun\ud83c\udf1e\ud83c\uddec\ud83c\udde9\ud83c\udde9\ud83c\uddf2\ud83d\udd25 (@justinsuntron) December 12, 2022<\/a><\/p><\/blockquote>\nJustin Sun to the rescue<\/h2>\n
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