Tron DAO Reserve has bought 100 million USDT as the market around the stablecoin fluctuates. According to a Twitter post by the organization on May 12, the purchase became necessary to support the industry.
The update says that 100 million USDT stablecoins has been added to the Tron DAO reserves. It stated that the coins were acquired at the cost of $98.2 million.
As per the post,
“To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have bought 100,000,000 #USDT with average price $0.982 with
$98,200,000.”USDT dropped marginally by 3% today. The release from the Tron DAO Reserve shows that the organization bought the USDT coin when its value dropped to $0.982, a deviation of $0.018 or 1.8% drop from its $1 peg.
1000 BTC in Tron DAO Reserve
On May 11, Tron DAO Reserve bought 1000 bitcoins at the rate of $30,096 per coin. The organization said that it spent $30,096,000 for the purchase.
The Tron founder and former CEO, Justin Sun announced on May 11, that the Tron DAO Reserve will allocate some funds to the defense of TRX. He highlighted that the move was necessary to forestall a market manipulation attack, such as witnessed by the Terra ecosystem.
The Tron DAO Reserve, launched its own stablecoin on May 11. The stablecoin, USDD also announced today, that its mining pool is live on the Curve Finance, holders of the stablecoin can stake and earn 30.863% – 77.157% APR.
Fund for The Mitigation of Market Risks
The Tron DAO Reserve is a fund launched by the Tron ecosystem to safeguard the industry. According to its website, some of its functions are prevention of panic, protection of the industry from severe economic long-term downturns and maintenance of the stability of its own stablecoin, USDD.
USDD is a decentralized stablecoin built on the Tron blockchain. It is an algorithmic stablecoin like Terra USD (UST). Its total market supply is $ 271,438,207. The total fund that has been authorized but not issued is $ 728,561,793.
According to the site:
“The TRON DAO Reserve issues and safeguards reserve assets of multiple blockchains or blockchain-powered financial institutions to minimize systemic risks and ensure the stability of the financial market in the blockchain industry”
The organization said that the fund will be used to stabilize all the stablecoins on the Tron network, irrespective of whether they are managed by centralized entities or decentralized. The platform’s burning contract shows that as at May 12, 3,388,003,231TRX has been burnt.