News

Tron Hikes Collateral to be Overcapitalized

0
Tron Hikes Collateral

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.

fxcoach

China’s Ant Group Unveils Digital Wholesale Bank in Singapore to Serve SMEs

Previous article

Solar Energy Shares Jumps After Report that Biden to Waive Tariffs on Solar Panels

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in News