Justin Sun boosts USDD backing as dollar peg weakens

On December 12, the USDD price fell to $0.97 — the lowest since June. Justin Sun, co-creator of the algorithmic stablecoin and founder of the TRON Foundation, reminded that the asset is over-collateralized (200%), and related transactions can be monitored on a blockchain explorer.

In case anyone ask about #USDD,\nit is 200% collateralized ratio on https://t.co/bQwdLAEw0B.\nYou can check all live data on blockchain 24*7. 😎 pic.twitter.com/whbJrKpMoh

—\nH.E. Justin Sun🌞🇬🇩🇬🇲🔥 (@justinsuntron) December\n12, 2022

The divergence between USDD and the USD occurred amid a neutral-to-negative backdrop for digital assets.

As of this writing, USDD traded above $0.98, according toCoinGecko.

According to TRON DAO, the \”depegging\” is defined as a deviation of the stablecoin’s price from the US dollar by 3%.

The discount formed in June after the collapse of the Terra ecosystem. A month later parity was restored. The new blow to USDD’s stability was dealt by the FTX collapse in November. Since then, attempts to restore the status quo have not been successful.

The situation is accompanied by active conversion of USDD into DAI, USDC and USDT in the Curve pool. As a result, the share of the pool’s liquidity backed by Sun’s stablecoin reached 82.6% of the total liquidity of $34.25 mln.

To ease tensions, the founder of the TRON Foundation allocated additional capital to defend the USDD peg. The total amount reached $1.45 bln.

🤑#USDD\nCollateral Ratio is OVER 200% now! Assets with a combined value of over $1.45 billion\nare safeguarding the #USDD\npeg!

🧐You can check our collateral assets\nat all times on https://t.co/CZjLJsQHQW\nand https://t.co/qOAE7gYIaA.

Keep\n#BUIDLing!💪 pic.twitter.com/ihIThpZzVF

—\nUSDD (@usddio) December\n12, 2022

Earlier, the deviation from parity for a similar USDN model with WAVES as collateral exceeded 15%.

In June, the TRON team withdrew 2.5 billion TRX from Binance to back USDD.

Earlier, amid the UST and LUNA collapse, the creators of USDD promised to modify it into an \”overcollateralized stablecoin\”.

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