Here is the rewritten content:
Tron’s USDD Stablecoin Bitcoin Reserves Dropping
The Tron DAO Reserve has made a significant decision to remove Bitcoins as part of its reserves for its USDD stablecoin, with the proceeds flowing back into HTX coin. This move has sent shockwaves through the crypto industry, with Tron’s stablecoin dollar peg experiencing some volatility, dropping by 0.17% to $0.9989 as of press time.
Tron’s USDD Stablecoin
The Arkham Intelligence data clearly shows that over the last three days, the Tron DAO Reserve address has moved 4,000 Bitcoin to HTX. Over the last year, they have systematically reduced the Bitcoin reserves by 42%, but still hold 8,000 Bitcoins as part of their reserves.
Currently, the USDD supply stands at 745 million, with a massive collateral value of $1.723 billion. However, it turns out that nearly 99% of this collateral is backed by Tron’s native crypto TRX, with the total backing at 10.93 million TRX.
Tron’s TRX Gaining Strength
The massive memecoin frenzy on the Tron blockchain has led to a strong surge in network activity, leading to 19% gains for the TRX price on the weekly chart. TRX has been having a close fight with Cardano’s ADA for the tenth spot and is currently trading around $0.1548 with a market cap of $13.45 billion. Amid the current rally, the TRX price is eyeing a move to its all-time high level of $0.20.
Justin Sun’s Vision
Founder Justin Sun provided his explanation for the decentralized USDD stablecoin, comparing its functioning to MakerDAO’s DAI. He said that USDD operates via a collateralization model, allowing collateral holders to freely withdraw assets whenever the collateral exceeds a specified threshold, usually between 120%-150%. However, whenever the collateral falls below 110%, it will add another collateral to avoid liquidation. "This is part of the basics of DeFi 101," he said.
Upgrading USDD Stablecoin
The USDD has a collateralization rate exceeding 300% as of now, indicating low capital efficiency. Sun noted that the TRON DAO Reserve plans to upgrade USDD stablecoin to make it a more competitive decentralized stablecoin in the market. He also emphasized that Tron is a stronghold for stablecoins.
Conclusion
In conclusion, Tron’s decision to remove Bitcoins from its USDD stablecoin reserves has sent shockwaves through the crypto industry. The move has led to a surge in TRX price and a strong rally in the network activity. With the USDD stablecoin aiming to become more competitive in the market, it will be interesting to see how the situation unfolds.
FAQs
Q: What is the current supply of USDD stablecoin?
A: The current supply of USDD stablecoin stands at 745 million.
Q: What is the collateral value of USDD stablecoin?
A: The collateral value of USDD stablecoin is $1.723 billion.
Q: What is the total backing of USDD stablecoin?
A: The total backing of USDD stablecoin is 10.93 million TRX.
Q: What is the current price of TRX?
A: The current price of TRX is $0.1548.
Q: What is the market cap of TRX?
A: The market cap of TRX is $13.45 billion.
Q: What is the goal of upgrading USDD stablecoin?
A: The goal of upgrading USDD stablecoin is to make it a more competitive decentralized stablecoin in the market.
