The TRON DAO Reserve announced on Twitter today that it has purchased an additional $10 million worth of USDD and $10 million of TRX for its reserves.
Tweet reads:
“To protect the overall blockchain industry and crypto market, TRON DAO Reserve has purchased another $10,000,000 of #USDD and #TRX as reserves.”
TRON reserves declined by $20 million after the current bear market and the additional amount would bring the reserves back to their previous levels. TRON has been steadily increasing its reserves as the crypto bear market persists.
The update to the TRON DAO Reserve was also confirmed by Justin Sun, the founder and leader of the TRON Foundation.
20 million total for today! https://t.co/Hcaq58TZhg
— Hey Justin Sun (@justinsuntron) 8 July 2022
Fight to maintain USDD dollar parity
USDD is TRON’s algorithmic stablecoin, similar to the USTC (formerly UST) of Terra Classic (formerly Terra LUNA).
To protect USDD from collapse similar to USTC, TRON has collateralized USDD using TRON DAO reserves.
The DAO holds $2.2 billion in collateral in BTC, USDC, USDT, TRX, and an additional $10 million in USD. USDD is overcollateralized around 316%.
Last month, the TRON DAO reserve added $2 billion as it battled against TRX in an attempt to distort USDD dollar parity. USDD spent a week trading below $1 and even dropped as low as $0.93, but the dollar has since returned to the party. After the d-peg, the TRON DAO has combined USDD and TRX on several occasions.
While the launch of the USDD stablecoin was promoted as a major booster for TRON, TRON had to fight tooth and nail to ensure that the algorithmic stablecoin didn’t collapse like the UST. In general, while USDD has maintained its dollar parity so far, the TRON token is down almost 50% from its 2021 highs of $0.16.
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