On Monday, June 13, Tron’s algorithmic stablecoin USDD briefly lost pegged to the US dollar and fell to $0.97.

At the time of writing, the asset is trading at $0.99.

The divergence took place against the background of the cryptocurrency market crash. At the time of writing, Bitcoin price failed at the $24,800 level, with Ethereum falling below $1270.

Previously, TRON DAO Reserve purchased BTC and TRON tokens to support USDD for a total of $50 million.

To protect the overall blockchain industry and crypto market, TRON DAO Reserve is acquiring $50 million worth. #BTC and #TRX for reserves.

— TRON DAO Reserve (@trondaoreserve) 11 June 2022

According to the Twitter post, the acquisition is determined by the “protection of the entire blockchain industry and the cryptocurrency market as a whole.”

According to the organization’s website, there is more than 723.3 million USDD in circulation at the time of writing, backed by Bitcoin, USDT and TRX reserves at almost 185% of the value.

Justin Sun, head of the Tron Foundation, announced that USDD emerged in April, the release took place on May 5. According to the algorithm of his work, the asset repeats the pattern of “stable money” TerraUSD (UST).

On May 10, TRON DAO Reserve began its first operations to acquire reserve assets. The organization purchased 500 BTC at an average price of $31,000, valued at more than $15.5 million, costing 595.7 million TRX, $45.6 million.

Sun then pledged to allocate $2 billion through the TRON DAO Reserve to prevent the stablecoin from pegging to the US dollar, as was the case with the UST. According to him, the team learned a lesson from the collapse of the Terra ecosystem.

Recall that Sun announced plans to keep the “overcollateralization” of the algorithmic stablecoin at at least 130%.