USDD stablecoin falls to 0.97, DAO inserts $ 700M to protect the peg
Analytics platform Nansen has shown that one of the funds capitalising on the UST depeg has begun to transfer a substantial amount of USDD.
Although the market has not yet fully recovered from the onslaught caused by the TerraUSD (UST) depeg, another stable coin project shows signs of distress, creating fears and speculation in the community.
Stablecoin protocol USDD’s price dipped to $0.97 on Monday on major crypto trading platforms. For this reason, the market began to keep an eye on the project, fearing that the project would follow the footsteps of Terra (LUNA). CurveSwaps, a bot that monitors large asset transfers, flagged that $1 million USDD was recently swapped to 997,339 Tether (USDT).
On the other hand, blockchain analytics platform Nansen has also noticed that one of the funds that capitalized on the UST depeg has started actively transferring large amounts of USDD and other stablecoins.
Looking at data about USDD’s collateralization, researcher Resdegen claimed that looking at the stablecoin’s backing, USDD is only 92% collateralized. Without considering Tron (TRX), the ratio falls down to 73%.
Replying to “extreme market conditions,” the Tron DAO Reserve recently declared that it received 700 million USD Coin (USDC) to defend the USDD peg. With this in play, the team behind the stablecoin clarified that the collateralization ratio of USDD is now increased to 300%.
In May, the USDT-dollar peg also presented signs of shaking, as the stablecoin traded below $0.99 on some exchanges. However, Paulo Ardoino, the chief technology officer of Tether, guaranteed users that, unlike other stablecoins, the project holds a “strong, conservative and liquid portfolio,” explaining that they can maintain USDT’s dollar peg.
In the same month, DEI, the dollar-pegged stablecoin by Deus Financealso failed to preserve its peg. The algorithmic stablecoin took a dive around $0.52 cents, dipping from $100 million in market capitalization to $52 million.
