USDD stablecoin falls to $0.97, DAO inserts $700M to defend the peg

While the market has not yet fully recovered from the onslaught caused by the TerraUSD (UST) depeg, another stablecoin project shows signs of distress, causing fears and speculation within the community. 

Stablecoin protocol USDD’s price dipped to $0.97 on major crypto trading platforms on Monday. Because of this, the market started to keep an eye on the project with fears that the project will follow the footsteps of Terra (LUNA). CurveSwaps, a bot that monitors large asset transfers flagged that $1 million USDD was recently swapped to 997,339 Tether (USDT).

On the other hand, blockchain analytics platform Nansen has also detected that one of the funds that capitalized on the UST depeg has started actively transferring larger amounts of USDD and other stablecoins. Nansen_intern tweeted:

Looking at data regarding USDD’s collateralization, researcher Resdegen argued that looking at the stablecoin’s backing, USDD is only 92% collateralized. Without considering Tron (TRX), the ratio falls down to 73%.

In response to the “extreme market conditions,” the Tron DAO Reserve recently announced that it received 700 million USD Coin (USDC) to defend the USDD peg. With this in play, the team behind the stablecoin explained that the collateralization ratio of USDD is now boosted to 300%.

Related: Deus Finance’s dollar-pegged stablecoin DEI falls below 60 cents

In May, the USDT-dollar peg also showed signs of wobbling, as the stablecoin traded below $0.99 on some exchanges. However, Paulo Ardoino, the chief technology officer of Tether, assured users that, unlike other stablecoins, the project holds a “strong, conservative and liquid portfolio,” explaining that they are capable of maintaining USDT’s dollar peg.

In the same month, DEI, the dollar-pegged stablecoin by Deus Finance also failed to maintain its peg. The algorithmic stablecoin took a dive around $0.52 cents, dropping from $100 million in market capitalization to $52 million.

All Dutch and English crypto news!

Bitcoin miner Mawson to defer all major capital expenditures until market conditions normalize

On Tuesday, Bitcoin (BTC) mining company Mawson Infrastructure Group said that it was suspending major capital expenditures until market conditions normalize. In addition, the firm...

Key Bitcoin price metrics say BTC bottomed, but traders still fear a drop to $10K

The crypto market is currently going through a period of heightened volatility as global economic conditions continue to worsen amid a backdrop of rising inflation...

That’s ‘Sir’ Crypto Dad: French order knights former CFTC chair Chris Giancarlo

The French government has given former United States Commodity Futures Trading Commission chair Chris Giancarlo, also known as "Crypto Dad," the equivalent of a knighthood. In...

Russian Duma passes bill to remove VAT, lower income tax rates on digital asset sales

The State Duma, the lower house of the Russian legislature, has passed a bill on the taxation of digital assets that exempts their sale from...

Beste exchanges

Koop je crypto bij Bitvavo