Justin Sun says removing 12K Bitcoin from USDD is just ‘DeFi 101’
USDD’s Bitcoin collateral was removed without a vote from its DAO, but Justin Sun insists it’s a normal event in DeFi.
Tron founder Justin Sun has played down concerns after the removal of 12,000 Bitcoin used as backing for USDD, a stablecoin governed by the Tron DAO Reserve.
On Aug. 19, 12,000 Bitcoin
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worth over $729 million was removed from an address previously listed as holding some of the collateral for USDD (USDD), according to blockchain explorer Blockchair.
Some on X allege Sun himself was responsible for the move, while others have raised concerns that the BTC was removed without a vote from the Tron DAO Reserve.
According to the governance page, the latest and only question that has been put to a community vote was whether to use burned Tron
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In an Aug. 22 statement on X, Sun played down concerns, arguing that USDD’s mechanism is similar to MakerDAO’s Dai
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and allows a collateral hodler to withdraw without approval if collateral exceeds an amount specified by the system.
“This is part of the basics of DeFi 101. Currently, USDD has a long-term collateralization rate exceeding 300%, which means that the capital utilization is not very efficient.”
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