For the same 1 dollar, USDD has done a little more work.
When I look at USDD, I recently have a strong intuition:
It feels more like a form that combines "stablecoin + yield" together, rather than just a pure pegged coin.
Many people use USDT, actually for three points:
No volatility, easy to exchange, good liquidity.
But if you think about it carefully, USDT itself doesn't "work" for you; the money just sits there in a static state.
With a circulation scale of over 700 million dollars, the assets in the protocol are even higher, with sUSDD alone having nearly 250 million dollars in circulation.
This indicates a problem: people are not using it temporarily, but are willing to keep their money in the system for the long term.
USDD comes with its own yield system, and the sources of yield are not complicated: it is not a high-risk strategy but rather places funds in the most stable lending markets on mainstream chains for flexible allocation, allowing for entry and exit at any time.
So the 10%+, 12% annualized rates you see are not gambling on market conditions, but rather a natural result of capital efficiency.
As for safety, it can actually be understood from a different perspective.
USDD does not rely on betting on the price of a certain asset to maintain stability, but instead heavily relies on liquidity modules that can be redeemed at any time.
This means that in extreme situations, the system does not need to "bear" it, but allows everyone to enter and exit in an orderly manner.
And precisely because of this, its price mechanism leans more towards market arbitrage rather than emotional speculation.
When there is a deviation, the opportunity is often given to the calm rather than creating panic.
Moreover, if you want to make it easier, just use USDT for entry and exit, which has almost no additional cost; if you want to improve capital utilization, put USDD on Ethereum or BNB Chain, steadily earn yields, and also participate in some periodic incentives.
USDD is not trying to tell a grand new story,
What it does is simple: under the premise of not sacrificing stability, it allows the stablecoin itself to start "working".
In a bunch of projects relying on narratives and high-risk returns, this design seems a bit rare.
