Topic: If USDD is "overcollaterized", why did it lose its peg? - page 2. (Read 254 times)
This crash will all be worth it if Justin Sun gets rekt.
With TRON DAO having a huge allocation of coins in its reserve, the peg should've been restored by now.
That's right, the TDR can easily restore the peg by injecting several million dollars from their reserve. But for some reason, they haven't utilized their reserve to maintain the peg.Does this mean collaterized stablecoins will have the same fate as algorithmic ones? If that's so, then DAI will be the next one on the list to lose it peg.
Unlikely, DAI has on-chain mechanisms to maintain the $1 soft peg and has been battle-tested through many crises, even the recent LUNA/UST crash. USDD, on the other hand, still relies on the TDR to do it. 
Can someone explain to me why TRON's overcollaterized stablecoin lost its peg a few days ago? It's not exactly an algorithmic stablecoin like UST was, so this wasn't supposed to happen. With TRON DAO having a huge allocation of coins in its reserve, the peg should've been restored by now. Does this mean collaterized stablecoins will have the same fate as algorithmic ones? If that's so, then DAI will be the next one on the list to lose it peg.
Thoughts?
Thoughts?
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