The post 12,000 Bitcoin Removed from USDD Reserves, Sun Responds appeared on BitcoinEthereumNews.com.

Tron founder Justin Sun has downplayed concerns following the removal of 12,000 Bitcoin, worth over $729 million, from the reserves backing Decentralized USD (USDD), a stablecoin governed by the Tron DAO Reserve. The action was recorded on August 19, when the blockchain observer Blockchair discovered that the Bitcoin was taken out of the address that was linked to the USDD collateral. This led to concerns on the social media platform x (former Twitter), where some of the users said that Sun was directly involved in the removal. Some people wondered why this particular Bitcoin was removed while no vote had been made by the Tron DAO Reserve, which is the governing body of USDD. Sun Justifies Bitcoin Removal from USDD as DeFi Norm Subsequently, on August 22, Sun responded to the allegations on his official account on X and claimed that the removal is a part of USDD DeFi mechanics, which are similar to MakerDAO’s DAI. He mentioned that from his understanding, the system gives hold strength the authority to allow the collateral holder to release the assets without the permission of the system if the collar amount is above a threshold set by the system. Sun stressed this is typical for DeFi and he also pointed out that USDD has a 301%+ collateralization rate to means it has more than required collateral as per the actual use of USDD from the stablecoin and more is not always efficient in terms of capital usage. After the removal, the Bitcoin address is no longer listed on the USDD transparency page, which indicates that the stablecoin is mainly collateralized by Tether (USDT) and TRX, the token of the Tron network. As stated on the transparency page, there are about 744 million USDD in circulation that are supported by $1.7 billion in TRX…

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Filed under: News - @ August 23, 2024 12:22 pm