TRON DAO Reserve is preparing to withdraw an additional 3 billion TRX tokens from a centralised exchange and decentralised finance (DeFi) lending protocol to prevent a repeat of Terra’s UST failure.
To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will withdraw another 3 billion #TRX out of Cefi exchange and Defi lending platform.
— TRON DAO Reserve (@trondaoreserve) June 16, 2022
The charity announced via Twitter on June 16, 2022, but the DAO did not specify which CeFi and DeFi systems would be used for withdrawals.
With the most recent declaration, the foundation plans to withdraw 5,500,000,000 TRX. As with Terra’s UST stablecoin, the scheduled withdrawals are designed to reduce liquidity for short traders and avert a collapse.
In addition, the move will prevent short-sellers from driving down the price of TRX, as the token redeems USD for UST, much as LUNA. If they can force the price of TRX to plummet, the coin will no longer be worth enough for USD redemptions.
The decentralised organisation intended to remove 2.5 billion TRX tokens from Binance to “protect the blockchain sector and crypto market.”
The TRON DAO Reserve sent $100 million USDC to Binance to buy TRX and then spent an additional $120 million to acquire the token.
To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will transfer another 100 million #USDC on TRON to cefi exchange to purchase #TRX.
— TRON DAO Reserve (@trondaoreserve) June 17, 2022
Earlier in June, Sun said TRON DAO would infuse $2 billion to combat short positions on Binance and safeguard the USDD peg.
USDD has failed to achieve parity with the U.S. dollar since the algorithmic stablecoin is now trading at $0.97. In contrast, the price of TRX is $0.060.