TRON DAO has increased its stablecoin reserves to protect the blockchain as the USDD continued to trade below its peg.
The reserve increased its supply of USDC tokens by 300 million on the blockchain. The current supply now stands at $2.8 billion.
USDD, which was launched earlier this year, was intended to be an algorithmic stablecoin. But it then overcollateralized to avoid a crash like Terra’s UST.
Assurance percentage reaches 300%
With the increase in reserve, the USDD’s collateral rate has reached 324.53%. After the announcement, a marginal increase in the token price has been noticed.
At press time, TRX is trading at an average price of $0.060. The token price is up 1.57% in 24 hours.
TRON’s stablecoin is currently trading at $0.97. The price is up 0.19% in the last 24 hours.
This measure was taken to protect the USDD from further de-pegging.
The TRON token had experienced a price drop of nearly 20% earlier this week. The de-pegging of the stablecoin is believed to be one of the reasons behind this slump.
However, the token registered the biggest gainer last month, thanks in large part to the hefty 30% yield USDD offered.
The blockchain has announced sooner that it will withdraw 3 billion TRX from the Cefi exchange and Defi loan platform.
By making these withdrawals, TRON blockchain is trying to reduce liquidity for shortsellers and close their positions.
TRON Aims for $3 Billion in Reserve
Blockchain CEO Justin Sun has hinted that this $2.8 billion reserve will grow to $3 billion. This is not the first time that the millions have been added to the reserve with the aim of saving the stabelcoin.
Earlier this month, another $100 million was injected into the reserve. This was the first transfer by the TRON to prevent its stablecoin from meeting the fate of TERRA LUNA.
According to CoinGecko’s data, USDD has registered a 126% growth in its market capital in the past 30 days.
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This post TRON Raises Reserves as USDD Remains Decoupled
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