Justin Sun had seen Signs of an impending attack on the USDD algorithmic stablecoin launched on the Tron network in May.

The head of the Tron Foundation has pledged to allocate $2 billion through the TRON DAO Reserve to avoid USDD pegging to the US dollar as in Terra USD (UST).

On May 11, UST and LUNA prices collapsed. According to CoinGecko, at the time of writing, the first asset is valued at $0.32 (the moment the drop hits $0.23), while the second is valued at $0.86 ($0.69).

Sun pointed to the sharp increase in the cost of financing to open short-term TRX, which acts as collateral for USDD. According to his estimates, the indicator in terms of annual profitability rose to 377.56%. These numbers reflect heavy demand for the asset from bears.

Singing expressed confidencethat their actions will lead to the elimination of the shorts.

He is also the president of the Tron Foundation. knowledgeableMirana Ventures has become the fifth member of TRON DAO Reserve. Prior to that, Alameda Research, Amber Group, Polomiex and Ankr joined the organization.

Recall that on May 10, TRON DAO Reserve began the first operations to purchase reserve assets. The organization purchased 500 BTC at an average price of $31,000, valued at more than $15.5 million. The purchase of 595.7 million TRX cost TRON DAO Reserve $45.6 million.

According to CoinGecko, at the time of this writing, USDD issuance was worth $271 million.

The Tron team announced the launch of the stablecoin at the end of April. The coin is backed by the network’s native token TRX and possibly $10 billion in liquid assets.