Tron, which launched the USDD algorithmic <a href="https://www.cryptoknowmics.com/news/tron-modifies-its-usdd-stablecoin-to-avoid-terra-like-disaster/" target="_blank" rel="noopener">stablecoin</a> last month, is attempting to avoid the problems that its fellow token TerraUSD encountered by increasing transparency and adding collateral. According to the TDR website, USDD had a collateralization ratio of 218 percent as of Monday morning Asia time. At the same time, the business claimed in a statement on Sunday that a guaranteed minimum collateral ratio of 130 percent would be maintained. TDR's website indicates $787 million in Bitcoin, Tether, and Tron's TRX reserves, contributing to $1.4 billion in assets backing USDD in circulation.

https://twitter.com/justinsuntron/status/1534079713018519553

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The announcements come only weeks after the Luna and TerraUSD ecosystems crashed, wiping off a combined market worth more than $60 billion. Tron founder <a href="https://www.forbes.com/profile/justin-sun/?sh=3aed53dd603f" target="_blank" rel="nofollow noopener">Justin Sun</a> said in a recent interview, 
<blockquote>“We want to have USDD to be overcollateralized, which I think will make market participants more comfortable about using us in the future."</blockquote>
<h2>Luna and TerraUSD</h2>
Algorithmic stablecoins, which are supposed to stay at a fixed price, usually $1, have a tumultuous history. After price drops in the stabilizing token, efforts like Neutrino and Basis have spectacularly lost their dollar pegs. The collapse of Luna and TerraUSD last month wreaked even more havoc on the cryptocurrency market, struggling as the Federal Reserve raises interest rates and inflation remains high. The two most popular tokens, Bitcoin and Ether, are down more than 50% from their November highs, and many other digital assets are down even more.

Sun claimed one of his lessons from Luna and TerraUSD was that the Luna Foundation Guard was pretty passive and had a "very easy to forecast" strategy for buying and selling Bitcoin, making it easier to attack. Do Kwon, the Terra ecosystem's founder did not respond to an emailed request for comment on Sun's remarks.

Tron Moved USDT Reserve to Purchase More BTC and TRX as Reserve 

Tron, which launched the USDD algorithmic stablecoin last month, is attempting to avoid the problems that its fellow token, TerraUSD, encountered by increasing transparency and adding collateral

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Tron Moved USDT Reserve to Purchase More BTC and TRX as Reserve

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