TRON DAO announced that it has added US$500 million in USDC to its reserve to support the dollar parity of its algorithmic stablecoin, but USDD has been out of sync with the greenback for nearly two days. USDD maintains its peg to the dollar by an algorithmic method that involves burning TRON's native token TRX – a model similar to the Terra UST (now USTC) stablecoin. The TRON DAO Reserve states that USDD is backed by Bitcoin, USDT, USDC, and TRX to 310 percent.

https://twitter.com/justinsuntron/status/1536690372201562112
<h2>Tron's USDD Stablecoin Remains Below $1 Parity</h2>
Following the event within the <a href="https://www.terra.money/" target="_blank" rel="nofollow noopener">Terra</a> blockchain ecosystem, many cryptocurrency supporters are carefully monitoring Tron's stablecoin USDD. The algorithmic stablecoin fell to $0.977 per unit on June 13 as crypto markets experienced massive daily losses.

The bitcoin (BTC) price dipped below $21K during Monday's evening trading sessions but remained barely over the all-time high set in 2017. Although crypto prices improved slightly on Tuesday, the USDD remains below the $1 parity.
<h2>Proximity Labs Researcher "Resdegen" Objected</h2>
However, a Twitter user named "Resdegen" from Proximity Labs pointed out that the promised USDD collateralization includes burned TRX, multiplying the reserve account. According to resdegen's calculations, USDD was collateralized at 73 percent before TRON DAO purchased extra collateral.

TRON DAO's reserves held about US$1.494 billion in cryptocurrencies at the time of writing, boosting USDD's collateralization rate to 206.55 per cent. According to the researcher, TRON DAO have US$140 million in USDT, which has been deposited into the lending and borrowing protocol JustLend, which is vulnerable to <a href="https://www.cryptoknowmics.com/news/t3rn-launches-smart-contract-hub-testnet-on-rococo-in-final-step-before-mainnet/" target="_blank" rel="noopener">smart contract</a> vulnerabilities and risks.

TRON DAO Added US$500 Million in USDC to its Reserve

TRON DAO claimed that it has added US$500 million in USDC to its reserve to support the dollar parity of its algorithmic stablecoin, but USDD has been out of sync with the greenback for nearly two days.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

TRON DAO Added US$500 Million in USDC to its Reserve

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