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The Tron DAO Reserve will work towards offering strong support to USDD.
Tron is one of the largest Decentralized Autonomous Organizations (DAO) in the world. USDD is the algorithmic stable coin managed by the firm and it is currently over-collateralized by almost 197%. Tron DAO’s mission is to overcollateralize it by a minimum of 130% and as part of that pursuit, it has now bought $50 million worth of Bitcoin and TRX to add to its USDD reserves.
With this, Tron’s USDD reserves are now financed by 14,040.6 Bitcoin, 140 million USDT and 1.906 billion Tron bringing the total valuation of the stable coin to a whopping $683.515 million. In its tweet, the DAO cited safeguarding the overall blockchain industry and the crypto market as the reason behind the purchase. A Block report stated just a few days back how Tron has announced a plan to increase its stablecoin’s capital backing post the downfall of Terra’s algorithmic stablecoin.
The trading is significant in the backdrop of the current performance of Bitcoin which is facing a pullback amidst changing monetary policies of various Central Banks across the globe. In such vague times, it would be better to observe how Bitcoin performs especially in the face of low trade volume and bearish days.
About Tron and Its USDD Stablecoin
Tron DAO, as its name suggests, is a decentralized autonomous organization that is on a mission to build a decentralized infrastructure for the future using blockchain and dApps. Founded in 2017 by Justin Sun, Tron has been getting unbelievable traction which is reflected in its 69 million users and transactions amounting to worth 2.7 billion. It recently announced (May 5th) the launch of a powerful decentralized algorithmic stablecoin, USDD.
The Tron DAO Reserve will work towards offering strong support to USDD, a significant distinguisher that sets it apart from its competitors. It will offer traders cushioning and stablecoin stability as it is pegged to TRX which will help in absorbing short-term volatility. At the same time, the Tron DAO Reserve will ensure USDD’s stability amidst industry-level instability.
Currently, TRON has Bitcoin, TRX, TUSD, USDT and USDJ in its list of assets in the reserve.