• 28 May, 2024

Justin Sun and TRON’s Stablecoin USDD Has Lost Its Dollar Peg

The algorithmic stablecoin known as Decentralized USD (USDD) that is used by the Tron network and was advocated by Justin Sun, the inventor of Tron, has deviated from its $1 peg. According to data provided by an on-chain markets aggregator called Lookonchain, the USDD vs. USDC/USDT/DAI pool is unbalanced, with the USDD accounting for 82.27% of the total.

For example, on the decentralized financial protocol Curve, users may trade USDD for other stablecoins like USDT, USDC, and DAI, but the liquidity pool is substantially overweighted in USDD, with over 80% of the pool’s assets being USDD.

According to the research carried out by Lookonchain, on November 8 whale 0x3f34 traded 4,495,446 USDD for 4,466,269 USDT at a ratio of 0.9935. After then, the USD began to drift away from its peg.

With a ratio of 0.9799, whale 0x3155 completed a trade 18 hours ago that included the exchange of 6,653,731 USDD for 6,519,662 USDC. The overall supply of the Tron reserve for USDD is 725 million dollars, and the total collateral is two billion dollars; the collateral ratio is 283.01%.

Lookonchain researched the facts of the collateral and discovered that more than 99% of the TRX was not accessible. And every single USDC is sent to JustLend, which is Justin Sun’s very own decentralized lending platform.

The USDC that was listed on JustLend has been borrowed, and the platform now only has 596 million USDC available for lending. Therefore, the amount of available collateral is only 596 million US dollars and 14,040.6 bitcoins, which is equivalent to 230 million dollars, and the real collateral ratio is just 114%.

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