It should be remembered that USDD almost identically copied the model of economy that had been established by UST, for example, offering the same percentage of interest for leveraging the stablecoin USDD, a 20% annual return, the same as that of LUNA. If USDD’s decline in appreciation had not been contained, it could have surpassed its previous record. For now, the Tron stablecoin has moderately reliable stability, this is not the case for USDN, which has a difficult past.
The USDN price has suffered two big drops, in its past. On April 4, it reached its historical low, reaching $0.78 due to doubts regarding its reserves as well as multiple accusations of market manipulation by WAVES.
The current situation is totally different, but looking at the history of the stablecoin, it can be seen that it is suffering from maintaining parity with the dollar. Just three days ago USDN dipped as low as $0.95 before recovering.
Since the fall of UST, stablecoins are being scrutinized, especially the algorithmic ones. The more crises they survive, the more confidence they will gain.although due to the current competition the transparency of the reserves will be one of the most crucial weapons of this sector.
Source: Ambito
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