{"id":62837,"date":"2022-06-13T16:22:29","date_gmt":"2022-06-13T13:22:29","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62837"},"modified":"2025-09-05T20:21:40","modified_gmt":"2025-09-05T17:21:40","slug":"analysts-unsettled-by-activity-around-the-stablecoin-usdd","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/analysts-unsettled-by-activity-around-the-stablecoin-usdd\/","title":{"rendered":"Analysts unsettled by activity around the stablecoin USDD"},"content":{"rendered":"<p>The hedge fund Oapital, which profited from <a href=\"https:\/\/forklog.com\/en\/news\/terras-death-spiral-how-and-why-luna-and-ust-collapsed\">the collapse<\/a> of UST from Terra, began making large transfers into USDD and other stablecoins. This drew the attention of analysts at Nansen.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Oapital (labelled on <a href=\"https:\/\/twitter.com\/nansen_ai?ref_src=twsrc%5Etfw\">@nansen_ai<\/a>), one of the funds involved in capitalising off of the <a href=\"https:\/\/twitter.com\/search?q=%24UST&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$UST<\/a> de-peg is now actively making large transfers of <a href=\"https:\/\/twitter.com\/search?q=%24USDD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDD<\/a> and other stables.<\/p>\n<p>Doesn\u2019t look great. <a href=\"https:\/\/t.co\/DBoubXoWvu\">pic.twitter.com\/DBoubXoWvu<\/a><\/p>\n<p>\u2014 Nansen Intern \ud83e\udded (@nansen_intern) <a href=\"https:\/\/twitter.com\/nansen_intern\/status\/1536271256290476032?ref_src=twsrc%5Etfw\">June 13, 2022<\/a><\/p><\/blockquote>\n<p> <script async==\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Doesn\u2019t look great,&#8221; commented the experts.<\/p>\n<\/blockquote>\n<p>On June 13, amid <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-price-tumbles-below-23000\">a market downturn<\/a>, the TRON team\u2019s algorithmic stablecoin briefly <a href=\"https:\/\/forklog.com\/en\/news\/algorithmic-stablecoin-usdd-briefly-lost-its-peg-to-the-us-dollar\">lost its peg to the dollar<\/a> in the United States. The asset\u2019s price fell to $0.97. At the time of writing, the \u201cstablecoin\u201d is trading at around $0.99 (<a href=\"https:\/\/www.coingecko.com\/en\/coins\/usdd\">CoinGecko<\/a>).<\/p>\n<p>On June 12, an analyst going by the handle Res noted that TRON DAO Reserve is converting reserves of USDD from the stablecoin into volatile Bitcoin and the network\u2019s native token, TRX.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">5\/ Even though the 100M USDT are used to buy even more <a href=\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BTC<\/a> &amp; <a href=\"https:\/\/twitter.com\/search?q=%24TRX&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$TRX<\/a>, what they are doing is to sell their stables to buy volatile assets<\/p>\n<p>If <a href=\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BTC<\/a> &amp; <a href=\"https:\/\/twitter.com\/search?q=%24TRX&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$TRX<\/a> keep dropping in price while <a href=\"https:\/\/twitter.com\/search?q=%24USDD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDD<\/a> supply increases, the risk of higher undercollateralization becomes even more worrisome<\/p>\n<p>\u2014 Res \u00ae\ufe0f (@resdegen) <a href=\"https:\/\/twitter.com\/resdegen\/status\/1536005552278589446?ref_src=twsrc%5Etfw\">June 12, 2022<\/a><\/p><\/blockquote>\n<p> <script async==\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;If BTC and TRX continue to fall in price while USDD supply increases, the risk of undercollateralization will rise,&#8221; he said.<\/p>\n<\/blockquote>\n<p>The expert also noted that, in addition, the TRON team lowered the annual percentage yield (APY) on deposits in the stablecoin from 30% to 10.9%.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">6\/ In addition to the undercollateralization situation, the <a href=\"https:\/\/twitter.com\/search?q=%24USDD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$USDD<\/a> APY has dropped from 30% to 10.9%<\/p>\n<p>If we remember, the issues with <a href=\"https:\/\/twitter.com\/search?q=%24UST&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$UST<\/a> started when Anchor introduced the dynamic rates, and the 19.5% APY dropped to 18% <a href=\"https:\/\/t.co\/O7S2ma3a3H\">pic.twitter.com\/O7S2ma3a3H<\/a><\/p>\n<p>\u2014 Res \u00ae\ufe0f (@resdegen) <a href=\"https:\/\/twitter.com\/resdegen\/status\/1536005556036567044?ref_src=twsrc%5Etfw\">June 12, 2022<\/a><\/p><\/blockquote>\n<p> <script async==\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;If you remember, the UST problems started when Anchor introduced dynamic rates, and the APY fell from 19.5% to 18%,\u201d wrote Res.<\/p>\n<\/blockquote>\n<p>On June 13, TRON DAO Reserve received 700 million USDC to back the USDD peg to the dollar.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">For the market extreme condition, <a href=\"https:\/\/twitter.com\/trondaoreserve?ref_src=twsrc%5Etfw\">@trondaoreserve<\/a> has received 700 million USDC to defend <a href=\"https:\/\/twitter.com\/hashtag\/USDD?src=hash&#038;ref_src=twsrc%5Etfw\">#USDD<\/a> peg. Now USDD collateralization rate is nearly 300%. <a href=\"https:\/\/t.co\/ULYBfjt2i0\">https:\/\/t.co\/ULYBfjt2i0<\/a><\/p>\n<p>\u2014 TRON DAO Reserve (@trondaoreserve) <a href=\"https:\/\/twitter.com\/trondaoreserve\/status\/1536264192033972226?ref_src=twsrc%5Etfw\">June 13, 2022<\/a><\/p><\/blockquote>\n<p> <script async==\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As of writing, the stablecoin is backed by reserves equal to 279% of its issuance. However, Res argues that TRX and USDT are incorrectly counted among the reserves. Tether coins are locked in the JustLend lending smart contract and are subject to exploitation risk, the analyst says.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/T7ueSeTt0KVDf6TIsWfN0N5NO1t1mE2lrbKVwiDRUzpSQp3vxNlomcVDk8g6M0Da4aHkg-kHwtNAgtpLoQjTVmGRxfH0v-8aShUEmXlvgLTvYHxubaB5lKvg7rEV_FL2rurZwkPyk_GoOTR2JA\" alt=\"Analysts unsettled by activity around the stablecoin USDD\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/tdr.org\/#\/\">TRON DAO Reserve<\/a>.<\/figcaption><\/figure>\n<p>In April, TRON Foundation head Justin Sun <a href=\"https:\/\/forklog.com\/en\/news\/tron-to-launch-algorithmic-stablecoin-usdd\">announced the launch of USDD<\/a>. On May 10, TRON DAO Reserve <a href=\"https:\/\/forklog.io\/tron-dao-reserve-kupila-bitkoiny-i-tokeny-trx-na-61-mln-dlya-obespecheniya-usdd\/\">began building reserves<\/a> to support the coin.<\/p>\n<p>In June, Sun said developers intended to maintain USDD overcollateralization at <a href=\"https:\/\/forklog.com\/en\/news\/tron-refines-usdd-into-an-overcollateralised-stablecoin\">no less than 130%<\/a> of total issuance. According to him, the team <a href=\"https:\/\/forklog.com\/en\/news\/justin-sun-explains-trons-usdd-collateral-model\">has learned a lesson<\/a> from the collapse of UST.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The hedge fund Oapital, which profited from the collapse of UST from Terra, began making large transfers into USDD and other stablecoins. This drew the attention of analysts at Nansen.<\/p>\n","protected":false},"author":1,"featured_media":62838,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[807,951,1660],"class_list":["post-62837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-stablecoins","tag-tron","tag-usdd-stablecoin"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=62837"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62837\/revisions"}],"predecessor-version":[{"id":62839,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62837\/revisions\/62839"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/62838"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=62837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=62837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=62837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}