Tron DAO purchased another $500 million worth USDC stablecoin on Tuesday to expand its reserve assets pool, and save confidence in its algorithmic stablecoin Decentralized USD (USDD).
Tron DAO confirmed this latest acquisition in a tweet.
Today’s transaction follows a day in which Tron DAO already injected 700,000,000 USDC into its stablecoin reserves, and allocated another 2,000,000 to protect against short positions against Tron (TRX).
Justin Sun , Tron’s founder, stated in April he wanted to acquire $10 billion of assets for USDD stablecoin. This move was inspired by TerraUST founders.
Tron has grown its assets quickly over the past month so that it now controls more collateral than its stablecoin supply. It believes this would stop USDD crumbling under extreme pressure.
The USDD stablecoin is still de-pegged to the dollar despite a significant slump in wider crypto markets. According to coinGecko data, the USDD dropped as low as $0.974 Tuesday morning and then recovered to $0.98 at time of writing.
USDD’s current market capitalization is just over $700million, while it has more than 1.5 billion in collateral reserve reserves. Tron DAO’s website states that it currently has 1 Billion USDC, 140 M USDT and 1.9 Billion tron ($110 Million) and 14,000 Bitcoin ($310 Million).