Justin Sun, the founder of TRON and now Grenada’s Permanent Representative to the World Trade Organization (WTO), said that the TRON DAO will allocate funds to protect TRX from the level of funding while shorting on Binance.
- Justin Sun said that TRON DAO will set aside $2 billion to deal with short positions on Binance due to the level of funding.
The funding rate for short TRX positions on Binance is minus 500% per annum. TRON DAO will allocate 2 billion US dollars to fight them. I don’t think they can even last 24 hours. A short squeeze is coming.
- Shortly after the tweet, he revealed that $800 million had been invested in the TRON DAO reserve to protect the USD peg.
- For those who don’t know, USDD is an algorithmic stablecoin that works by burning TRX to maintain dollar parity.
- However, to avoid a possible UST-LUNA scenario, USDD is taking the approach of overcollateralizing USDD on a scale of 1 to 1.3 by acquiring various assets such as BTC, TRX and stablecoins such as USDC, USDT, TUSD and USDJ. .
- In other words, according to the team, $1 should always be worth $1.3.
- Meanwhile, on Official siteUSDD’s collateral ratio, which supposedly shows the stability and security of a stablecoin, is currently 280%.
- However, the USDD peg has come under attack in recent hours as the entire crypto market has been shattered.
- According to CoinMarketCap, the value of the algorithmic stablecoin in USD fell to USD 0.98:
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Credit : cryptopotato.com