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TronDAO takes a move to expand liquidity into the reserve pool to power USDD, its newly introduced stablecoin. And seemingly, its collateral rate has surged by nearly 60% since its launch.
TronDAO recently took to Twitter to announce the news and highlighted that it had added another portion of liquidity into the reserves of USDD. And that a total of $300 Million in USD Coin (USDC) equivalent was transferred to its reserve pool. With this massive liquidity fund injection, the TronDAO’s collateral rate has attained a new height.
The collateral rate is basically the ratio between the value of the liquidity supply and the reserves of a stablecoin. And following this transfer, the rate has broken through the 300% milestone.
During the launch recently, the creators behind USDD asserted that the stablecoin went live with a collateral rate of 200% and that its documentation guarantees at least 130% of the collateral rate.
Meanwhile, in spite of the de-peg of USDD, the APY on the USDD/USDT pair in the Sun(dot)io protocol hit nearly 50%, which is almost 150% higher than the Anchor protocol provided for prior to its collapse.
The De-Pegged USDD Still Not Affected Despite Added Liquidity
And this boosted the vehement liquidity injection, though it was still not successful in recovering the USDD peg to the price of the US Dollar. Its price surged from $0.95 to $0.977 in the last two days.
Reportedly, TronDAO and H.E. Justin Sun are attempting to protect the USDD design from attacks for the fifth consecutive day. The recent stablecoin de-peg took place in just eight days after the mainnet launch.
At the time of writing, USDD is exchanging hands at $0.9697 with a market cap of $701,374,146 and is down by approximately 0.67% in the last twenty-four hours.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
