While the market has yet to fully recover from the onslaught caused by the TerraUSD (UST) depeg, another stablecoin project is showing signs of distress, causing fear and speculation in the community.

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On Monday, the price of the Stablecoin USDD protocol fell to $0.97 on major trading floors. Because of this, the market began to follow the project with fears that the project would follow in the footsteps of Terra (LUNA). CurveSwaps, a bot that tracks the transfer of large assets tagged this $1 million was recently exchanged for 997,339 Tether (USDT).

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On the other hand, blockchain analytics platform Nansen also discovered that one of the funds that made money on UST depeg began to actively transfer large amounts in US dollars and other stablecoins. Nansen_intern tweeted:

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Looking at USDD collateral data, researcher Resdegen argued that when looking at stablecoin collateral, USDD is only 92% collateralized. Excluding Tron (TRX), the ratio drops to 73%.

In response to “extreme market conditions”, the Tron DAO reserve recently announced that he received a US$700 million (USDC) coin to protect the US dollar peg. With this in play, the team behind the stablecoin explained that the USDD collateral ratio has now been increased to 300%.

Dollar-pegged stablecoin Deus Finance DEI falls below 60 cents

The USDT peg to the dollar also showed signs of fluctuating in May as the stablecoin traded below $0.99 on some exchanges. However, Paulo Ardoino, Tether’s CTO, assured users that, unlike other stablecoins, the project has a “strong, conservative, and liquid portfolio”, explaining that they are capable of maintaining the USD-USD peg.

In the same month, DEI, Deus Finance’s dollar-pegged stablecoin, also failed to maintain its peg. The algorithmic stablecoin fell about 0.52 cents, falling from a $100 million market cap to $52 million.