![Tron’s USDD stablecoin falls to $0.97 as it loses dollar peg](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2022/12/usdd-depeg.jpg&w=70&h=37&q=75)
Tron’s USDD stablecoin falls to $0.97 as it loses dollar peg
Justin Sun-led TRON has deployed about $200,000 to defend the USDD peg.
![Tron’s USDD stablecoin falls to $0.97 as it loses dollar peg](https://cryptoslate.com/wp-content/uploads/2022/12/usdd-depeg-768x403.jpg)
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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 USDT,ย USDC,ย Bitcoin, 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 โ 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.
Deploying more capital – steady lads https://t.co/55pra5wQMi https://t.co/CexyaBy2hx
— H.E. Justin Sun๐๐ฌ๐ฉ๐ฉ๐ฒ๐ฅ (@justinsuntron) December 12, 2022
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 DAOย injected about $700 million USDC to restore USDD to its dollar peg.