Stablecoins
Rephrasing Concerns Over Removal of Bitcoin as Collateral for USDD
Friday. August 23 at 8:00 PM
1 min. readTron founder Justin Sun addressed worries following the withdrawal of 12,000 Bitcoin backing Decentralized USD, a stablecoin overseen by the Tron DAO Reserve. On Aug. 19, 12,000 BTC, valued at $729 million, was taken from an address previously holding collateral for USDD. Speculation arose that Sun initiated the transfer without TRON DAO Reserve approval. Sun clarified that USDD operates similarly to MakerDAO's DAI, allowing collateral holders to withdraw if exceeding specified amounts. USDD's transparency page no longer lists Bitcoin as collateral, with over 744 million USDD in circulation. The stablecoin holds $1.7 billion in TRX and USDT reserves, maintaining a collateralized ratio over 230%. USDD, launched in 2022 as a competitor to TerraUSD, aims to be pegged to the US dollar but faced volatility, dropping to $0.92 in March 2023. MakerDAO has been contacted for comment on the matter.