🧵 【Playing with the 4th Edition】USDD: Brother Sun's "Federal Reserve" Dream, is it a DeFi golden shovel or a ticking time bomb?
As a trader, discussing products from the Tron ecosystem always brings mixed feelings. However, after reviewing the latest in-depth report on USDD @USDD - Decentralized USD , I feel it's necessary to set aside biases and reevaluate this "decentralized stablecoin" from a profit-loss ratio perspective.
1️⃣ No longer the "mud dog" of the past
Many people's impression of USDD is still stuck in its initial issuance phase. But data doesn’t lie: USDD is now an over-collateralized stablecoin with a collateralization rate exceeding 200%. TDR holds over 600 million dollars worth of assets (BTC, USDT, TRX) as a safety net. A 200% cushion is indeed stronger than many who play with air.
2️⃣ This is a "clear card" bet
The core advantage of USDD is quite straightforward: yields. The APY of sUSDD can reach 6-12%, which belongs to the “high-interest zone” on-chain.
But the risk is also transparent: TRX accounts for as much as 53% of the reserves.
This means that playing with USDD is essentially bullish on the Tron ecosystem. If TRX crashes, the so-called over-collateralization will shrink. Therefore, this is not just saving money; it more resembles a Carry Trade with hedging characteristics.
3️⃣ Where is the future Alpha?
According to the 2025 roadmap, Brother Sun is planning big moves:
• January 2025: Upgrade to 2.0, introducing a more complex treasury mechanism.
• September 2025: Dive into Ethereum (Ethereum PSM).
This means that USDD will no longer just be a “chip” on Tron; it aims to grab liquidity on Ethereum. If multi-chain connectivity can be achieved, the issue of liquidity discount may be alleviated.
👨💻 My conclusion:
If you are a coin hoarder pursuing ultimate security, USDC/USDT remains the top choice;
But if you are skilled at managing risk and want to earn some excess returns in the Tron ecosystem, USDD is a good DeFi golden shovel.
The key point is: do you believe in Brother Sun's ability to pay?
