Tron DeFi Summer Campaign Kicks Off with $2 Million Reward Pool
The third round of DeFi Summer on Tron begins on October 4 with a $2 million reward pool for four assets: TRX, USDD, JST, and SUN. The campaign will run for 60 days, reviving the network's lending markets. However, the reward pool is relatively small compared to the market capitalization of TRX, which stands at around $31.8 billion. This means that the effect of the campaign on the price of TRX may be limited, although it could have a more noticeable impact on the smaller tokens.
The price of TRX has been stuck in a narrow range of $0.325 to $0.345 for a month, and a close above $0.345 would be the first break out of the range since early September. The 50-day average of TRX is at $0.336, just above the current price, while the 200-day average is at $0.327, just below it. This indicates that TRX is currently stuck between these two averages, with no clear direction.
DeFi Summer campaigns often involve raised interest rates, but this also comes with risks. Participants are relying on the program code of the lending market and the collateral, as well as the stability of the stablecoin USDD, which has previously depegged from the dollar.