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Tron has hiked the capitalization backing up its stablecoin, after the collapse of Terra’s stablecoin USD.
Source: Tron DAO
TRON is up 1.47%, UST up 3.12%, and LUNA up 1.88%.
Tron Founder Justin Sun said the stablecoin will now be overcollateralized, with the reserve to be maintained at a minimum of 130% of the total amount of USDD in issuance.
Tron said the collateral reserve — made up of cryptocurrencies and other stablecoins — will have a “guaranteed” ratio, and would have real-time updates on the website starting June 5.
The reserve currently holds 10,500 Bitcoin estimated to be worth $330 million, 240 million USDT, and 1.9 billion TRX. It also includes 8.29 billion TRX in a burning contact.
Sun said the firm seeks to upgrade USDD to a hybrid model, in a bid to have an algorithmic stablecoin on one side and the Tron DAO reserve on the other hand.
The announcement comes after the decline of Terra’s UST and LUNA, which wiped out billions in a matter of days following the loss of their peg to the greenback.
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