Prosperity and Reefs: Interpreting the Dual Narrative of USDD
In a bustling market, the most attractive stalls are always crowded with people, offering generous prizes. But the wise will ask one more question: on what foundation is this grand prize built?
Recently, the stablecoin USDD has become like the hottest stall. Data shows that its total locked value (TVL) has exceeded $850 million, with a circulation of over 800 million. Especially after its collaboration with the Binance wallet to launch yield activities, the related staked assets surged from $100 million to nearly $300 million within a week, offering an annualized return of about 12%. The founder has made bold statements, and the community is enthusiastic; everything seems to be thriving.
However, core issues still exist. USDD's claim of over-collateralization still contains a large amount of its own ecosystem token TRX in its reserves. This is like using one's own company's shares as the main collateral—safe and sound during good times, but once market confidence wavers, the collateral's value can significantly shrink. The true risk resistance capability can be gauged by the actual reserves of external hard assets like Bitcoin and USDC after excluding its own tokens.
In addition, its governance mechanism is not entirely decentralized. Key fund movements rely on multi-signature wallets, which brings efficiency but also harbors single-point risks. For cross-chain users, there are additional bridge security risks to bear.
Therefore, in the face of high-yield temptations, investors should pay more attention to the reserve levels of core assets like USDC and USDT in its stablecoin exchange pool. This reflects the system's true health far better than superficial TVL numbers. In the crypto world, understanding the supporting structure behind the prosperous scenes may be more important than chasing yields themselves. True stability comes from a clear awareness of risks.
