TRON team to withdraw 2.5 billion TRX from Binance to bolster USDD stability

The decentralized autonomous organization TRON DAO Reserve said it would withdraw 2.5 billion TRX from Binance ‘to safeguard the blockchain industry and the crypto market’.

To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will withdraw 2.5 billion #TRX out of binance.

— TRON DAO Reserve (@trondaoreserve) June 15, 2022

Earlier the DAO transferred 100 million USDT to Binance to purchase TRX. The operation was part of efforts to support the stability of the algorithmic stablecoin USDD.

To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have transferred 100 million #USDC on TRON to binance to purchase #TRX. https://t.co/lVTDlvQNEL

— TRON DAO Reserve (@trondaoreserve) June 15, 2022

On June 13, amid crypto market volatility, USDD lost parity to the US dollar. The stablecoin has not been able to regain its peg to the anchor asset for three days. On Tuesday and Wednesday its price fell to around $0.95.

As of writing, the ‘stablecoin’ trades near $0.97.

On June 14, TRON DAO Reserve received 500 million USDC and increased the USDD collateralization to 310%. On its addresses hold more than $1.5 billion in BTC, USDT, USDC and TRX. Part of the collateral (over $723 million) also consists of the cryptocurrency that was taken out of circulation during the stablecoin’s issuance.

As reported, after the collapse of UST and LUNA the TRON team said it would modify USDD into an ‘over-collateralised stablecoin’.