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Tron’s USDD stablecoin falls to $0.97 as it loses dollar peg

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Tron’s USDD stablecoin has lost its peg as its price dipped to $0.97, sparking fears of another UST collapse.

The Tron-based algorithmic stablecoin launched on May 5, and its market cap currently stands at roughly $708 million. Tron founder Justin Sun said USDD would be over-collateralized by low-volatile assets like USDTUSDCBitcoin, to avoid a repeat of UST’s collapse.

The Tron DAO Reserve shows the USDD supply at $725.3 million, with collateral consisting of TRX, BTC, USDT, and USDC totaling $1.4 billion in value — equating to a ratio of 200%.

Over the last seven months, USDD has mostly maintained its dollar peg besides de-pegging briefly on June 14, when it traded at $0.97.

According to CryptoSlate data, the USDD algorithmic stablecoin has lost its dollar peg again, as its current price sits at $0.978.

In addition, USDD is currently imbalanced on Curve as it accounts for 82% of the USDD/3CRV pool.

USDD’s recent depeg has spread fears and speculations about the collapse of another algorithmic stablecoin. Since the UST collapse of May 9, Wave-backed USDN has lost its dollar peg below $0.8.

USDD falling below its dollar peg has led to fear in the market causing Tron’s native TRX token to fall 3.5% over the last 24 hours.

Justin Sun to the rescue

Justin Sun said Tron is deploying more capital to restore the peg.

CryptoSlate checked the Etherscan address shared by the Tron Founder and confirmed that roughly $200,000 TUSD has been deployed to rescue USDD so far.

When USDD first depegged on June 14, TRON DAO  injected about $700 million USDC to restore USDD to its dollar peg.

Posted In: , Stablecoins

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