As an investor focused on DeFi for many years, I have been looking for US dollar assets that combine safety, stability, and sustainable returns. In 2025, USDD 2.0 is undoubtedly one of the targets I am most optimistic about.
After completing the upgrade in January this year, USDD has completely bid farewell to the old version USDDOLD's algorithm mechanism that heavily relied on TRON DAO Reserve subsidies, and instead adopted a fully decentralized over-collateralized model. Anyone can freely mint USDD with mainstream assets like BTC, ETH, TRX, USDT through on-chain contracts. The tokens possess immutable, unfrozen, and unpausable native properties, with all collateral, reserves, and transaction records 100% on-chain and auditable in real-time. So far, the collateralization rate has remained stable at over 150%, with total collateral assets amounting to approximately $560 million, far exceeding the circulation, providing ample security redundancy. CertiK and ChainSecurity have completed five audits in total, with the latest report released in October 2025, indicating no critical vulnerabilities in the code, and the mechanism design has received the highest industry evaluation.
In terms of stability, PSM (Price Stabilization Module) performs textbook-perfectly. Even slight price deviations allow arbitrageurs to quickly pull the price back to its peg using a 1:1 exchange with no slippage. PSM liquidity on the TRON chain is approaching $50 million, while Ethereum and BNB Chain each have tens of millions of dollars in liquidity. During several extreme market events this year, other major stablecoins generally experienced de-pegging by 2%-15%, while USDD consistently fluctuated between 0.9998 and 1.0002, making it arguably the strongest "dollar peg."
The revenue metrics are equally impressive:
Multi-chain users can stake USDD to mint sUSDD, which can be exchanged for approximately 12% real annualized return on Ethereum and BNBSC, and supports deposits and withdrawals at any time.
Currently, PancakeSwap's USDD-sUSDD liquidity mining (Merkl incentive) has a combined APY of over 23%, and the $125,000 in rewards have not yet been fully distributed.
Those who prefer low risk can choose JustLend DAO or HTX Earn and directly enjoy a fixed annualized return of 10%;
The recently launched Binance Wallet Yield+ special event has boosted the overall yield to 25.82% (12% base + event bonus), with a 30-day share of 300,000 USDD in rewards. The entry threshold is only 100 USDT, with no TVL cap.
More importantly, the Smart Allocator, launched in June, has achieved fully transparent on-chain operation. The protocol has generated more than $7.2 million in profits through low-risk strategies, completely eliminating external subsidies and forming a positive economic flywheel.
In my view, USDD 2.0 possesses all the elements of a top-tier stablecoin: over-collateralization and transparent collateralization, the most rigorous audit record, the most robust pegging mechanism, and the most abundant on-chain yield pathways. In 2025, with increasingly stringent regulations and a continued decline in trust in centralized stablecoins, it is becoming the most worthwhile USD asset to increase my holdings in my portfolio.
