Tron DAO withdrew the $750 million BTC collateral used to support USDD, and Justin Sun stated that this move aims to improve capital efficiency

2024-08-23 09:32:52

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ChainCatcher news, according to a report by The Block, Tron DAO Reserve withdrew approximately $750 million worth of Bitcoin on Wednesday, which was previously used to support the USDD stablecoin. Tron founder Justin Sun stated that users need not worry, explaining that this move is aimed at improving capital efficiency, as USDD's previous long-term collateralization rate exceeded 300%.

Currently, USDD is primarily backed by Tron’s native token TRX. Sun compared the mechanism of USDD to MakerDAO's DAI, emphasizing its security.

At present, the circulation of USDD is approximately $744 million, making it the seventh largest stablecoin. Although official data indicates that its collateralization rate exceeds 230%, third-party institution Bluechip estimates that the actual collateralization rate may be only 53%.

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Tron DAO USDD Justin Sun TRX

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