Brothers
Today, let's analyze the token economics of USDD in depth and understand why #usdd以稳见信
First, let's talk about the supply mechanism:
The total authorized issuance of USDD is 2 billion tokens, and the current total supply is over 789 million (specifically 789,667,547 tokens), with nearly all of it in circulation, basically 100% available on the market. The market cap is $789 million, and the FDV (fully diluted valuation) is the same as the market cap because it is fully circulated. In simple terms, the supply is transparent, the circulation rate is high, and there won't be a sudden crash.
Next, let's discuss the minting and redemption mechanisms:
① CDP vault minting:
You deposit collateral, such as TRX, sTRX, or USDT, and must exceed the minimum collateralization rate (120-150%), then mint USDD directly based on the collateral value. You need to pay a stability fee, with an annualized rate of 0.5-30%, adjusted dynamically based on market conditions. In July 2025, there was a promotion where the TRX rate dropped to 0.5%, sTRX to 1%, and with additional yields, you can get an annualized return of 12-20%, which is very attractive!
② PSM zero slippage swap:
This is straightforward, directly swapping USDT/USDC for USDD at a 1:1 ratio, with no minting or redemption fees, just gas fees. The same applies when redeeming, instantly swapping back at 1:1, without the hassle of collateral. Very convenient, suitable for large transactions.
③ Liquidation penalties:
If the collateralization ratio falls below 150%, the system triggers auction liquidation, and the penalty is used to ensure the system's solvency. This design is intended to mitigate risks.
④ Peg maintenance mechanism:
When the price deviates from $1, arbitrageurs can use PSM or CDP to bring it back on track. In extreme markets, the TRON DAO Reserve will step in to buy and sell to stabilize prices.
There are also multiple collateral combinations (TRX/sTRX/USDT) to diversify risks, so you won't be afraid of fluctuations in a single asset.
Finally, let's talk about the yield token sUSDD:
Launched in October 2025, Staked USDD:
Yield rate: annualized 12-14%, from the profits of the smart allocator in protocols like Aave, JustLend, etc. The TVL (total value locked) broke $200 million on December 13, 2025, and grew by 800% in Binance Wallet Yield+, gaining momentum!
Mechanism: The smart allocator has deployed $394 million across multiple DeFi protocols, and all the profits are distributed to sUSDD holders. By holding it, you can earn passively, with steady gains!
In summary, USDD is not only stable but also provides you with real earnings.
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