TerraUSD collapse in May has grown concern among investors about the possibility of stablecoins losing their peg value, and since May, the crypto industry has witnessed many stablecoins losing their 1:1 value with the US dollar.
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Tron’s Network Stablecoin Depeg Below $0.97
Tron’s algorithm stablecoin USDD again has lost its peg value after falling below $0.97 as per data by Coingecko on Monday, the lowest fall since June 22.
The drop has however violated the DAO’s 3% price fluctuation threshold for price fluctuations to be considered de-pegs.
Following the downfall of the FTX exchange in November, there was a decline in the peg value of Tron’s USDD, the same occurred with the world’s largest algorithm stablecoin USDT.
The prolonged USDD de-pegging is accompanied by the continuous increase in the stablecoin dominance rate in the USDD/3CRV liquidity pool based on the decentralized exchange Curve.
As of writing, USDD accounted for 86% of the pool’s total liquidity of $34.5 million, up from 80% seen on Nov. 10. The heavy imbalance suggests users are increasingly swapping USDD for the pool’s other components – DAI, USDC and USDT.
Justin Sun Reacted on Twitter
To address the crypto industry concern, Tron founder Justin Sun has reacted to the event on Twitter, announcing that the firm is working on deploying more funds to defend Tron’s stablecoin, adding that the USDD has a collateral ratio of 200%.
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