Justin Tron’s DAO is the latest to join the ‘Buy the dip club’ netting 600 million TRX and 500 BTC worth $45 million and $15 million, respectively, mirroring El Salvador’s recent buy the dip move.
The Tron DAO Reserve took to Twitter to explain that TRX and USD are sailing amidst high market volatility and that its main goal is to “safeguard the overall blockchain industry and crypto market.
Adding it intends to “prevent panic trading caused by financial crises, and mitigate severe and long-term economic downturns.”
Founded in September 2017 by H.E. Justin Sun, the TRX network hosts the largest circulating supply of USD Tether stablecoin across the globe, overtaking USDT on Ethereum since April 2021. The network completed full decentralization in December 2021 and is now a community-governed DAO.
Tron’s stablecoin project launched
Most recently, the algorithmic stable coin USDD was announced on the TRON blockchain, backed by the first-ever crypto reserve for the blockchain industry – TRON DAO Reserve, marking its’s official entry into decentralized stablecoins.
Apart from that, the DAO Reserve plays the role of a lender of last resort to market participants and maintains reserve assets of various blockchains and blockchain-powered financial institutions. It also manages the permissions of USDD as its early custodian.
On May 5, Tron’s algorithmic stable coin USDD went live and so far, the fiat-pegged token has been listed on a number of decentralized finance [DeFi] protocols.
Two days later, the DAO Reserve announced it has bought 504.6 million TRX to fuel the algorithmic stablecoin.
The project has a number of partners now and USDD is listed on Pancakeswap, Kyberswap, Sunswap, Sun.io, Curve Finance, Uniswap, and Ellipsis.
Tron’s USD stable coin runs in a similar fashion to that of Terra’s UST mechanism, which is backed with Bitcoin and TRX cryptocurrencies. But with Terra’s recent fall from grace and the broken dollar peg spooking the broader market sentiments, it might not look feasible of keeping a stable peg to the dollar.
Previously, The TRON DAO Reserve has announced Alameda Research as the first Member and Whitelisted Institution to mint Decentralized USD [USDD], a fully decentralized stablecoin supported by mathematics and algorithms.