{"id":71348,"date":"2022-12-12T17:14:58","date_gmt":"2022-12-12T15:14:58","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=71348"},"modified":"2025-09-08T08:11:43","modified_gmt":"2025-09-08T05:11:43","slug":"justin-sun-boosts-usdd-backing-as-dollar-peg-weakens","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/justin-sun-boosts-usdd-backing-as-dollar-peg-weakens\/","title":{"rendered":"Justin Sun boosts USDD backing as dollar peg weakens"},"content":{"rendered":"<p>On December 12, the USDD price fell to $0.97 \u2014 the lowest since June. Justin Sun, co-creator of the <a href=\"https:\/\/forklog.com\/en\/news\/what-are-algorithmic-stablecoins\">algorithmic stablecoin<\/a> and founder of the TRON Foundation, reminded that the asset is over-collateralized (200%), and related transactions can be monitored on a blockchain explorer.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">In case anyone ask about <a href=\\\"https:\/\/twitter.com\/hashtag\/USDD?src=hash&#038;ref_src=twsrc%5Etfw\\\">#USDD<\/a>,\\nit is 200% collateralized ratio on <a href=\\\"https:\/\/t.co\/bQwdLAEw0B\\\">https:\/\/t.co\/bQwdLAEw0B<\/a>.\\nYou can check all live data on blockchain 24*7. \ud83d\ude0e <a href=\\\"https:\/\/t.co\/whbJrKpMoh\\\">pic.twitter.com\/whbJrKpMoh<\/a><\/p>\n<p>\u2014\\nH.E. Justin Sun\ud83c\udf1e\ud83c\uddec\ud83c\udde9\ud83c\uddec\ud83c\uddf2\ud83d\udd25 (@justinsuntron) <a href=\\\"https:\/\/twitter.com\/justinsuntron\/status\/1602224191037591552?ref_src=twsrc%5Etfw\\\">December\\n12, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>The divergence between USDD and the USD occurred amid a neutral-to-negative backdrop for digital assets.<\/p>\n<p>As of this writing, USDD traded above $0.98, according to<a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/usdd\\\">CoinGecko<\/a>.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-full\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"839\\\" height=\\\"481\\\" src=\\\"https:\/\/forklog.com\/wp-content\/uploads\/Image-71.png\\\" alt=\\\"Image-71\\\" class=\\\"wp-image-193139\\\" srcset=\\\"https:\/\/forklog.com\/wp-content\/uploads\/Image-71.png 839w, https:\/\/forklog.com\/wp-content\/uploads\/Image-71-300x172.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/Image-71-768x440.png 768w\\\" sizes=\\\"auto, (max-width: 839px) 100vw, 839px\\\" \/><figcaption class=\\\"wp-element-caption\\\">USDD\/USD dynamics. Data: <a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/usdd\\\">CoinGecko<\/a>.<\/figcaption><\/figure>\n<\/div>\n<p>According to TRON DAO, the \\&#8221;depegging\\&#8221; is defined as a deviation of the stablecoin&#8217;s price from the US dollar by 3%.<\/p>\n<p>The <a href=\"https:\/\/forklog.com\/en\/news\/algorithmic-stablecoin-usdd-briefly-lost-its-peg-to-the-us-dollar\">discount<\/a> formed in June after<a href=\"https:\/\/forklog.com\/en\/news\/terras-death-spiral-how-and-why-luna-and-ust-collapsed\"> the collapse of the Terra ecosystem<\/a>. A month later parity was restored. The new blow to USDD&#8217;s stability was dealt by<a href=\"https:\/\/forklog.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\"> the FTX collapse<\/a> in November. Since then, attempts to restore the status quo have not been successful.<\/p>\n<p>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&#8217;s liquidity backed by Sun&#8217;s stablecoin <a href=\\\"https:\/\/curve.fi\/#\/ethereum\/pools\/factory-v2-116\/deposit\\\">reached 82.6%<\/a> of the total liquidity of $34.25 mln.<\/p>\n<p>To ease tensions, the founder of the TRON Foundation <a href=\\\"https:\/\/twitter.com\/justinsuntron\/status\/1602224787161391105\\\">allocated additional capital<\/a> to defend the USDD peg. The total amount reached $1.45 bln.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">\ud83e\udd11<a href=\\\"https:\/\/twitter.com\/hashtag\/USDD?src=hash&#038;ref_src=twsrc%5Etfw\\\">#USDD<\/a>\\nCollateral Ratio is OVER 200% now! Assets with a combined value of over $1.45 billion\\nare safeguarding the <a href=\\\"https:\/\/twitter.com\/hashtag\/USDD?src=hash&#038;ref_src=twsrc%5Etfw\\\">#USDD<\/a>\\npeg!<\/p>\n<p>\ud83e\uddd0You can check our collateral assets\\nat all times on <a href=\\\"https:\/\/t.co\/CZjLJsQHQW\\\">https:\/\/t.co\/CZjLJsQHQW<\/a>\\nand <a href=\\\"https:\/\/t.co\/qOAE7gYIaA\\\">https:\/\/t.co\/qOAE7gYIaA<\/a>.<\/p>\n<p>Keep\\n<a href=\\\"https:\/\/twitter.com\/hashtag\/BUIDLing?src=hash&#038;ref_src=twsrc%5Etfw\\\">#BUIDLing<\/a>!\ud83d\udcaa <a href=\\\"https:\/\/t.co\/ihIThpZzVF\\\">pic.twitter.com\/ihIThpZzVF<\/a><\/p>\n<p>\u2014\\nUSDD (@usddio) <a href=\\\"https:\/\/twitter.com\/usddio\/status\/1602232213617405953?ref_src=twsrc%5Etfw\\\">December\\n12, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Earlier, the deviation from parity for a similar USDN model with WAVES as collateral<a href=\"https:\/\/forklog.com\/en\/news\/waves-falls-12-as-usdn-loses-peg-to-the-us-dollar\"> exceeded 15%.<\/a><\/p>\n<p>In June, the TRON team<a href=\"https:\/\/forklog.com\/en\/news\/tron-team-to-withdraw-2-5-billion-trx-from-binance-to-bolster-usdd-stability\"> withdrew 2.5 billion TRX<\/a> from Binance to back USDD.<\/p>\n<p>Earlier, amid the UST and LUNA collapse, the creators of USDD promised to<a href=\"https:\/\/forklog.com\/en\/news\/tron-refines-usdd-into-an-overcollateralised-stablecoin\"> modify it into an \\&#8221;overcollateralized stablecoin\\&#8221;<\/a>.<\/p>\n<p> \u0427\u0438\u0442\u0430\u0439\u0442\u0435 \u0431\u0438\u0442\u043a\u043e\u0438\u043d-\u043d\u043e\u0432\u043e\u0441\u0442\u0438 ForkLog \u0432 \u043d\u0430\u0448\u0435\u043c <a href=\\\"\/\/telegram.me\/forklog\\\"\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Telegram<\/a> \u2014 \u043d\u043e\u0432\u043e\u0441\u0442\u0438 \u043a\u0440\u0438\u043f\u0442\u043e\u0432\u0430\u043b\u044e\u0442, \u043a\u0443\u0440\u0441\u044b \u0438 \u0430\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0430.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On December 12, the USDD price fell to $0.97 \u2014 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.<\/p>\n","protected":false},"author":1,"featured_media":71349,"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":[1302,807,951,1660],"class_list":["post-71348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-justin-sun","tag-stablecoins","tag-tron","tag-usdd-stablecoin"],"aioseo_notices":[],"amp_enabled":true,"views":"13","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/71348","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=71348"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/71348\/revisions"}],"predecessor-version":[{"id":71350,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/71348\/revisions\/71350"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/71349"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=71348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=71348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=71348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}