The general crypto Monday has started the week with a plunge, but for TRON, things have somehow started to get worse after the Tron DAO Reserve was forced to deploy resources after its stablecoin de-pegged.
The USDD stablecoin started the week by temporarily depeging to as low as $0.97; something that caused a corresponding reaction affecting TRX price which had dropped by 18.68% to $0.06291 at the time of writing.
At the time of writing, the price of the USDD stablecoin had not yet regained its Dollar parity and was trading at $0.9892.
Justin Sun is ready to fight for the stability of USDD
The head of Tron Foundation, Justin Sun, has stated that he is ready to deploy as much as $2 billion to keep the USDD pegged to the dollar.
So far, the TRON DAO has deployed 700 million USDC coins to try and keep the USDD pegged to the dollar.
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) June 13, 2022
The current situation with the USDD stablecoin seems to be following a similar trajectory to Terra’s TerraUSD (UST) stablecoin.
When the UST first de-pegged, Do Kown announced that they would be deploying more capital to try and keep the UST pegged to the US Dollar.
— R.I.P. Old Kanye (@adisonfarrel) June 13, 2022
Avoiding Terra’s path
Justin Sun had earlier on said that the USDD would be overcollateralized at 130% to avoid going down the same path that the TerraUSD used.
Sun has gone ahead to also say that TRON DAO will deploy $2 billion to fight back the negative funding on Binance. He also warned of an impending short squeeze on TRX tokens over the next few days or weeks.