Amid Monday's crypto market crash, tronUSDD\u2019s recently launched algorithmic stablecoin lost its peg to the dollar, falling to a low of $0.9764 according to data from CoinMarketCap.\nAt press time, USDD has yet to regain its parity with the dollar, with a price hovering around $0.98.\nAccording to Tron founder Justin Sun, the decoupling of USDD occurred due to a large number of short sellers targeting TRX, the network's native token, on the cryptocurrency exchange. Binance. He added that the Tron DAO Reserve would commit up to $2 billion to fight short sellers.\n\u201cTRX Dip Funding Rate on Binance is 500% Negative APR,\u201d Sun tweeted on Monday. \u201c[Tron DAO Reserve] will deploy 2 billion dollars to combat them. I don't think they can last even 24 hours. [A] close grip short.\n\n\nA short crunch occurs when traders bet that the price of an asset will go down, but the price goes up, forcing them to close positions.\nTRX fell more than 16% on Monday to hit a two-month low of $0.58 before recovering to its current value of $0.60, down 5% on the day, according to CoinMarketCap.\n\nWhat is USDD?\nUSDD is an algorithmic stablecoin, a type of cryptocurrency that is pegged to another asset (usually a fiat currency like the US dollar) using smart contract algorithms\nUnlike stable coins What Tie or Circle USDCUSDD was initially not backed by any reserves, but instead maintained its peg to the dollar through arbitrage trading between USDD and TRX, the native token of the Tron network.\nHowever, after a similar algorithmic stablecoin, Terra's UST, crashed last month, wiping out $60 billion in investor wealth in just one week, USDD changed its operating model to include collateral in the form of Bitcoin (BTC), TRX, USDT and USDC reserves.\n\nThe team behind USDD also promised a minimum collateral ratio of 130%, which would be higher than the 120% collateral ratio maintained by MakerDAO. ICD stable currency.\nOn Monday, the Tron DAO Reserve announced a series of measures aimed at \u201cfurther safeguarding the blockchain industry and the crypto market in general.\u201d\n\nTo safeguard the blockchain industry in general and the cryptocurrency market, TRON DAO Reserve has increased 650,000,000 #USDC supply in #TRON. Currently, the supply of USDC on TRON has reached $2.5 billion.\n\u2014 TRON DAO Reserve (@trondaoreserve) June 13, 2022\n\nThis included two separate purchases of 100 million USDC each (here Y here), followed by another purchase of 650 million USDCwhich increased the supply of USDC in TRON to a total of $2.5 billion.\nAccording to the Tron DAO Reserve website, the collateral ratio of the stablecoin is currently almost 248%.\nDo you want to be a crypto expert? Get the best of Decrypt straight to your inbox.Get the biggest crypto news stories + weekly recaps and more!