Tron's USDD dips below 96 cents as stablecoin enters third day adrift

Quick Take

  • Tron’s USDD algorithmic stablecoin fell to $0.959 this morning.
  • This comes as the Tron DAO Reserve announced it’s withdrawing 2.5 billion TRX from Binance

Tron’s Decentralized USD (USDD), an algorithmic stablecoin inspired by TerraUSD, entered its third day trading below $1 on Wednesday. 

The token dipped as low as $0.959 this morning before recovering to $0.974 at the time of writing, according to CoinGecko data.

USDD shares the same algorithmic model of mint and burn as the now-collapsed TerraUSD (UST). Whenever the price of USDD is below a dollar, the system allows you to burn one USDD to mint $1 worth of tron, USDD’s sister token on the Tron blockchain.

USDD first lost its dollar peg on Monday amid a broader crypto market slump. It traded around the $0.98 mark yesterday before another dip this morning. Amid the USDD de-peg, the price of tron (TRX) got slashed by roughly 16% today, and is changing hands at $0.05. 

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

<