TronDAO injects another $300M in USDC, USDD peg is still negative

TronDAO has announced yet another cash injection package aimed at keeping its USDD stablecoin pegged to the dollar. The DAO seeks, by all means, that the USDD does not continue its similar movement to the LUNA’s UST.

TronDAO announced that it has sent a total of $300 million USD Coin to its reserve pool. The information is from the official TronDAO Twitter. After this transfer, the guarantee rate surpassed the 300% milestone.

This means that, in theory, there is more than $3 for every $1 in USDD.

Justin Sun, when he created USDD, said that it launched with a 200% guarantee rate. In addition, the project documentation guarantees a minimum guarantee rate of 130%.

TronDAO

This wave of accelerated liquidity injection, however, is still not managing to recover the parity of the USD with the US dollar. In the last two days, its price has increased from $0.95 to $0.977, but it is still far from $1.

Justin Sun and TronDAO are protecting the USDD project from attacks for the fifth day in a row. The stablecoin was unlinked from the dollar on June 13, 2022, just eight days after its launch on the mainnet.

So far, on this fifth day of the “fight” more than 3 billion TRX have been bought to secure the peg. According to the DAO, there is a total planned repurchase amount of 5.5 billion TRX. This equates to 6% of the total token supply.

Recently, 2.5 billion TRX was withdrawn from Binance to decrease the asset’s supply and improve its value. However, Tron’s TRX also suffered a similar fate to the rest of the market, dropping 30.78% in 7 days.