USDD Depeg: USDD Stablecoin Threatens To Depeg, Draws UST Comparisons


USDD Depeg: USDD Stablecoin Threatens To Depeg, Draws UST Comparisons

Many people have seen parallels between the USDD stablecoin and the recent UST meltdown.

mockup,shopping bag mockup,shopping,psd mockup,free shopping bag mockups,mockups,shopping bag mockups,photoshop mockup,mockup design,mockup templates,canvas,mockup photoshop,bag mockup,mock-up,shopping bag mockup free psd,tote bag mockup,mockup template,canvas tote bag mockup,free psd mockup,mockup psd,mockup designs,psd mockups,best mockups,shopping bag,free bag mockup,mock-up templates,how to design a shopping bag,free mockup

USDD investors are concerned about a possible USD depreciation in the wake of today's crypto meltdown, which saw the Tron DAO stablecoin drop 3% to $0.97.

Several crypto critics reacted quickly to the decline, connecting the current USDD depreciation to the Luna crypto meltdown, which resulted in the TerraUSD depreciation. The UST stablecoin, which was previously tied to the dollar, is currently worth $0.008.

Despite the possibility of depegging, Tron DAO Reserves continues to inject more crypto-assets into its stablecoin in order to defend the peg and the larger crypto market. Will it, however, be successful?

USDD Depeg Looms Amid Crypto Crash

The Tron-backed USDD has now lost its peg to $1, according to CoinGecko, falling to $0.977 on June 13. It has now climbed marginally to $0.99, but remains below its target.

Furthermore, blockchain analytics platform Nansen has discovered that Oaptial, a fund that profited from the UST depreciation, is currently transferring substantial amounts of USDD and other stablecoins.

The USDD drop was sparked by the continued unpredictable crypto market mayhem, according to current crypto market sentiment. This has caused a number of other cryptocurrencies, including Bitcoin and Ethereum, to plummet.

Tron founder Justin Sun and the DAO Reserve said that $700 million USDC has been spent to protect its USDD depeg, citing "extreme market circumstances." This has increased the USDD's collateralization to 270 percent. Since then, it has raised additional $100 million USDC.


USDD Depreciation Is Likened to Luna and UST

The USDD stablecoin, like Terra's UST, is an algo-stablecoin. It works by burning Tron (TRX) to keep the USDD peg stable.

Tron has also dropped by 17% in the previous 24 hours.

The USDD team over-collateralized the stablecoin following the Terra collapse by purchasing Bitcoin, TRX, USDC, USDT, TUSD, and JUSD. It claimed to have a minimum collateral guarantee of 130 percent. Following these fresh crypto injections, it has already risen back to 270 percent, after supposedly falling below this percentage yesterday.

Terra acquired and deployed Bitcoin and other cryptocurrencies to protect the UST peg during the UST meltdown, only for it to fail.

CoinGecko creator Bobby Ong compared Justin Tron to Terra's Do Kwon when the depeg began. "Another stablecoin depegging, another millionaire playing a high-stakes market game," he explained. "We know how the last coin ended up.

"I suppose it's popcorn time to watch if this peg is restored or if it dies." 

No comments
Post a Comment

    Reading Mode :
    Font Size
    lines height