A slew of terrible events is occurring one after the other in the middle of the crisis that has gripped the cryptocurrency market as a direct result of the FTX collapse. The price of the algorithmic stablecoin USDD that is based on the Tron blockchain has now fallen to $0.97 after it was decoupled from the dollar.
Curve, a decentralized platform that allows traders to trade USDD against three other stablecoins while operating inside a liquidity pool, recently had a liquidity crisis for the USDD, which caused the price of USDD to fall.
Traders’ preference for other stablecoins like as USDT, USDC, and DAI is shown by the fact that the liquidity pool now contains more than 80% of all money in USDD alone.
Later on, the creator of Tron, Justin Sun, said that he is increasing the amount of cash that he is deploying to back USDD and stressed that USDD has a collateral ratio of 200%.
In case anyone ask about #USDD, it is 200% collateralized ratio on https://t.co/bQwdLAEw0B. You can check all live data on blockchain 24*7. 😎 pic.twitter.com/whbJrKpMoh
— H.E. Justin Sun🇬🇩🇩🇲🔥₮ (@justinsuntron) December 12, 2022
The transaction data that was released by Justin Sun indicates that he traded more than $203,000 in USDC and $570,000 in USDT for the USDD stablecoin. The most recent occasion that USDD was unable to maintain its dollar peg occurred in June of this year, after the collapse of Terra LUNA.
At the time of this writing, the Tron USDD has not yet returned to its previous parity with the dollar.
Compiled by Coinbold