In the midst of the cryptocurrency market crisis due to the FTX crash, a slew of tragic occurrences is happening one after another. The algorithmic stablecoin USDD on the Tron blockchain just lost its peg to the dollar and slipped to $0.97.
The USDD price has plummeted as Curve, a decentralized platform where traders may trade USDD against three other stablecoins inside a liquidity pool, had a liquidity crunch for the USDD.
The liquidity pool currently holds over 80% of all funds in USDD alone, showing that traders prefer other stablecoins like USDT, USDC, and DAI.
Tron founder Justin Sun later revealed that he is boosting his capital deployment to support USDD and emphasized that USDD has a 200% collateral ratio.
Justin Sun revealed transaction data indicating that he exchanged over $203,000 in USDC and $570,000 in USDT for the USDD stablecoin. The last time USDD lost its dollar peg was in June of this year, following the Terra LUNA collapse.
Meanwhile, Trons USDD is yet to regain its dollar peg at the time of writing.
