The TRON DAO Reserve has purchased Bitcoin and TRON tokens to back the algorithmic stablecoin USDD.
The organization purchased 500 BTC at an average price of $31,000 for a total of more than $15.5 million. The purchase of 595.7 million TRX cost the TRON DAO Reserve $45.6 million.
The head of the TRON Foundation, Justin Sun announced the launch of USDD in April; it took place on May 5. According to Sun, the TRON DAO Reserve will set the asset’s yield at a ‘risk-free’ 30% per year.
USDD, by design, replicates the UST stablecoin model.
Earlier, it had repeatedly lost its peg to the US dollar. On May 9, users withdrew more than 3.3 billion UST from the protocol. In less than 24 hours on May 10, outflows totaled another 1.1 billion UST.
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