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TronDAO, a decentralized autonomous organization (DAO) that oversees the development of the Tron network announced that it has deployed over $50 million USD coin (USDC) to an unnamed centralized exchange to buy back TRX and its algorithmic stablecoin USDD.

TronDAO Wants to Buy Back USDD and TRX

On Friday, TronDAO Reserve announced that it is purchasing 50 million USDC to buy back TRX and USDD in an effort to back the algorithmic stablecoin, as the project aims to leverage a decentralized forex reserve similar to Terra’s UST reserves.

Tron’s TRX token is currently trading at $0.065, up 2.8% from the past 24 hours and over 9.5% in the past week. The token currently ranks 14th largest cryptocurrency with a market capitalization of over $6 billion.

The Tron ecosystem is the third-largest blockchain by TVL (total value locked), with over $4 billion locked into smart contracts across its seven decentralized finance (DeFi) protocols, according to data from DeFi Llama.

USDD Continues to Trade for Under $1

USDD hit an all-time low of $0.9255 on June 19, before recovering to $0.97 at the time of writing, according to data from CoinGecko. It still remains several cents shy of $1, the value it’s intended to be traded at.

Despite TronDAO having deployed efforts to peg its USDD stablecoin, it is still de-pegged below $1 over the past week. Just this week, TRON DAO tweeted that it has purchased 10 million USDD on TRON, to safeguard the crypto market and overall blockchain industry. However, this has not made the stablecoin rise above $1.

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