The TRON DAO has been raising its stablecoin holdings to protect the blockchain from crashing while the USDD remains de-pegging from its dollar value.
The reserve raised its supply of USDC tokens by 300 million on the blockchain. The current total supply stands at $2.8 billion.
USDD which was launched earlier this year was meant to be an algorithmic stablecoin. However, to avoid a crash like Terra’s UST, it overcollateralized.
USDD Reached 324.53% Amid Reserve Increase
The USDD’s collateralization rate reached 324.53% when the reserve was increased. Following the news, the token’s price marginal increase was seen.
TRX is currently trading at an average price of $0.060 at the time of writing. The price of the token has increased by 1.57% in the last 24 hours.
TRON’s stablecoin is presently trading at 0.97. In the last 24 hours, the price has risen by 0.19%.
This step was done to protect the USDD against further depegging.
The price of the TRON token had dropped by nearly 20% earlier this week. One of the causes of the current decline is the de-pegging of the stablecoin.
However, the token was the largest gainer last month, largely due to USDD’s hefty 30% dividend.
The blockchain previously announced the withdrawal of 3 billion TRX from the Cefi exchange and Defi lending platform.
TRON blockchain is attempting to restrict liquidity for short-sellers and closing their positions by making these withdrawals.Â
TRON aims to boost reserve to $ 3 billion
The blockchain’s CEO, Justin Sun, has hinted that the $2.8 billion reserves might grow to $3 billion. This isn’t the first time that millions of dollars have been added to the reserve to save the stablecoin.
Earlier this month, another $100 million was placed into the reserve. This was TRON’s first transfer to prevent its stablecoin from succumbing to the same fate as TERRA LUNA.
USDD’s market capitalization has increased by 126% in the last 30 days, according to CoinGecko data.
