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Tron DAO Reserve publishes list of assets to sponsor USDD

Following the implementation of USDD, Tron DAO Reserve, the decentralized umbrella fund for USDD, has released a list of assets aimed at protecting the ecosystem’s new network of stablecoins. This received a lot of community attention in the midst of UST’s loss of peg (1 USD anchor).

On May 7, the USDD sponsored fund announced the purchase of over $38 million in TRX at 0.07727 to bolster the stablecoin’s value.

Since then, this fund has continuously “bottom-fished” other asset classes such as Bitcoin, USDC and USDT, … to add to its list.

Specifically, 200 million USDT at $0.985 and 1,249.57 BTC at 29,239. Not stopping there, Tron DAO Reserve announced that it will continue to raise $ 10 billion in the next 6 to 12 months.

Plan to add 10 billion USD to the USDD supplementary fund
Plan to add 10 billion USD to the USDD supplementary fund

Like Terra’s Stablecoin, USDD is an algorithmic stablecoin of the Tronx ecosystem that uses the minting and burning mechanism of TRX coins to guarantee the peg value (1 USD anchor). To protect its stablecoin, Tron DAO Reserve has also added many other crypto assets besides Bitcoin such as USDC, USDT, etc.

After the UST depeg event, many questions were raised about the safety of decentralized stablecoins. However, Justin Sun, the founder of Tron, said he is still quite confident in the algorithmic stablecoin model.