@USDD - Decentralized USD #USDD

USDD: The USD stablecoin in the TRON ecosystem, with opportunities and challenges coexisting

Introduction: Stablecoins as the cornerstone of the crypto world

Against the backdrop of severe volatility in the cryptocurrency market, stablecoins have become a bridge connecting traditional finance and the blockchain world. USDD (Decentralized USD), as the core stablecoin on the TRON network, aims to provide users with a reliable medium for transactions, value storage, and DeFi (decentralized finance) tools, with its 1:1 peg to the value of the dollar. Since its launch in 2022, USDD has integrated into the TRON ecosystem and expanded to multi-chain environments such as Ethereum and BNB Chain. However, as market cycles fluctuate, USDD also faces risks of decoupling and regulatory pressure. This article will delve into the origins, mechanisms, market performance, and potential challenges of USDD, helping readers gain a comprehensive understanding of the ecological role of this stablecoin.

Origins and Development of USDD

USDD was officially launched on May 5, 2022, by the TRON DAO Reserve (TDR), led by TRON founder Justin Sun. As the native stablecoin of the TRON ecosystem, USDD was born during a turbulent period in the crypto market—when the collapse of TerraUSD (UST) triggered global panic. TDR, as a decentralized autonomous organization, is responsible for the issuance and management of USDD, aiming to achieve true decentralization through community governance.

Unlike pure algorithmic stablecoins, USDD adopts a hybrid model: on one hand, it relies on algorithmic adjustments to the reserve ratio, and on the other hand, it ensures stability through an over-collateralization mechanism. In its early launch, USDD quickly attracted users within the TRON ecosystem for payments, lending, and liquidity mining. As of December 2025, the circulation of USDD has exceeded 660 million, marking a milestone growth in the DeFi field. Recently, USDD also completed the migration from the old contract to USDD 2.0, enhancing the security and efficiency of smart contracts.