USDD stablecoin slips to $0.97,DAO inserts $700 Million to defend peg
USDD stablecoin slips to $0.97,
While the market is still reeling from the fallout from the TerraUSD (UST) de-peg, another stablecoin project is in trouble, sparking panic and uncertainty within the community.
Yesterday, the price of the stablecoin protocol USDD fell to $0.97 on major crypto trading platforms. As a result, the market began to keep a watch on the project, fearful that it might follow in the footsteps of Terra (LUNA). According to sources, $1 million USDD was just switched to 997,339 Tether.
Nansen, a blockchain analytics platform, has also discovered that one of the funds that profited from the UST depreciation has begun aggressively moving increasing quantities of USDD and other stablecoins.
According to statistics on USDD's collateralization, the stablecoin's backing is only 92 percent collateralized. When Tron (TRX) is removed from the equation, the ratio drops to 73%.
The Tron DAO Reserve recently declared that it has acquired 700 million USD Coin (USDC) to protect the USDD peg in reaction to "extreme market circumstances." With this in place, the stablecoin's collateralization ratio has been increased to 300 percent, according to the team behind it.
The USDT-dollar peg began to sway in May, with the stablecoin trading below $0.99 on several platforms. Tether's chief technical officer, Paulo Ardoino, assured customers that, unlike other stablecoins, the project has a "strong, conservative, and liquid portfolio," noting that they can keep USDT's dollar peg.
DEI, Deus Finance's dollar-pegged stablecoin, failed to maintain its peg throughout the same month. The algorithmic stablecoin's market value fell from $100 million to $52 million after a decline of roughly $0.52 cents.
