The absurdity of USDD and its weak fundamentals

USDD has depegged, as we all probably know by now. I did some digging and found that USDD was based on shady fundamentals. There is no inherit buy pressure and as soon as people lose their confidence then it can depeg even further. On the other hand tron dao has the reserves in order to fight it, but they don’t seem capable of doing that properly.

USDD is basically based on the concept of luna, which we all know collapsed horribly. Users were able to exchange 1 dollar worth of TRX for 1 USDD in order to mint it, the burning mechanism as outlined in their whitepaper where users could exchange 1 USDD for 1 dollar of USDD isn’t implemented yet. This basically means that USDD doesn’t have any inherit buy pressure other then the reserves and if people really start to lose confidence then the situation can quickly depeg and unravel.

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9 thoughts on “The absurdity of USDD and its weak fundamentals”

  1. Bro did you really do enough research on this or are you just describing your expectation? Why do you think tronDao is not capable of using its reserve?

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  2. My toxic trait is that I love the excitement of a coin crashing. Watching Luna go down was the most fun I’ve had in a while, even if I lost a little money.

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  3. The only USD stable coin should be from US Central Bank… Let’s wait for the birth of CBDC. I can’t trust any other non-US entities.

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  4. Everyone knew USDD was a shit system, before it even launched….. I have 0 sympathy for people who fell for it (as it planned to use the same BS mechanic of USDD being supported by TRX, instead of … USD).

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