TechFlow News — On Wednesday, the Tron DAO Reserve withdrew approximately $750 million worth of Bitcoin that had previously been used to back the USDD stablecoin. Justin Sun, founder of Tron, reassured users not to worry, explaining that the move aims to enhance capital efficiency, as USDD's over-collateralization ratio had previously exceeded 300%.
USDD is now primarily backed by TRX, Tron's native token. Sun compared USDD's mechanism to MakerDAO's DAI, emphasizing its security.
Currently, USDD has a circulating supply of about $744 million, making it the seventh-largest stablecoin. While official figures claim a collateralization ratio above 230%, third-party firm Bluechip estimates the actual ratio may be as low as 53%.
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