Tron’s Decentralized USD (USDD), an algorithmic stablecoin inspired by TerraUSD, entered its third day trading below $1.
The token dipped as low as $0.959 this morning before recovering to $0.974 at the time of writing.
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 today.
Amid the USDD de-peg, the price of tron (TRX) got slashed by roughly 16% today, and is changing hands at $0.05.
Meanwhile, the Tron DAO Reserve, a body that exists to defend USDD’s peg, has been acquiring assets to back up the stablecoin’s value. It has bought more than 1 billion USDC in recent days and holds an additional $500 million worth of assets like USDT, bitcoin and tron.
In preparation for order to prepare for the worst outcome, Tron DAO announced today it would pull out 2.5 billion TRX (worth some $125 million) from the Binance exchange. holders.