Recently, people have been asking whether @USDD - Decentralized USD is worth paying attention to. Many introductions start with "decentralized stablecoin, 1:1 pegged to the US dollar," but to be honest, such statements are hard to impress with nowadays. What is truly valuable is why it is designed this way and what scenarios it is suitable for.

First, let's talk about positioning. USDD does not follow the "algorithm gimmick" route but rather a more stable structure of decentralization + over-collateralization. The essential goal is only one:

👉 To achieve stability and transparency that can be verified without relying on centralized custody.

This is completely different from the mindset of some early radical stablecoins.

Mechanically, the significance of over-collateralization is not about "locking up more assets" but about leaving a safety buffer for the system in extreme market conditions. You can think of it as an "insurance cushion" on the chain, preventing a complete collapse during severe price fluctuations. Although this design sacrifices some capital efficiency, it trades for higher predictability.

Now let's look at the use cases. USDD is not meant to exist independently; it clearly serves the DeFi ecosystem:

Liquidity mining, lending, settlement, cross-protocol calls all require a stablecoin that is sufficiently transparent, with clear rules, and is not prone to unexpected issues. In this regard, USDD is more like infrastructure than a speculative target.

One point I personally agree with is:

It does not attempt to "redefine stablecoins" but chooses to elevate decentralization, auditability, and composability above the passing line on the existing path.

The advantage of USDD lies not in stimulation but in usability.

It may not be the fastest-growing, but in an environment that increasingly emphasizes risk control and compliance boundaries, this type of basic, stable stablecoin is more likely to stay at the table in the long run.

Whether it is the optimal solution will be gradually verified by the market;

But as a "tool-like asset" in DeFi, USDD is at least a logically coherent and clearly directed choice. #usdd以稳见信