Recently, in discussions about stablecoins, everyone's anxiety points are actually quite consistent: they all seem similar on normal days, but when the market fluctuates, they start to 'check the goods'. I also reviewed USDD 2.0 with this mindset. What impressed me the most was not any promotional slogan, but the confidence in saying, 'You don't need to trust me, you can verify it yourself': collateral, reserves, and key data are all displayed on the chain, and the logic is clear. To put it bluntly, safety is never just something you talk about; it must withstand repeated verification and audits.
In terms of stability, it takes a more pragmatic approach: providing a 1:1 exchange channel through PSM, trying to keep slippage very low, allowing the arbitrage mechanism to automatically pull it back when prices deviate. You can think of it as a 'self-correcting' system: when deviations occur, there is motivation for someone to make corrections, making it easier to maintain the peg. Recently, many stablecoins have shown significant fluctuations, whereas USDD's price performance has been closer to the pegged range. This kind of 'not stealing the show but not dropping the ball' stability is often what is most needed for daily use.
As for yields, I find USDD 2.0's approach quite 'layered': those who want a more native and on-chain operation can follow the sUSDD route; those who enjoy activity rewards also have incentive opportunities for LP; those who want to be more hands-off can choose a more platform-oriented investment; and DeFi users can obtain relatively stable annualized returns in on-chain lending scenarios. It doesn’t force you down a specific path, but gives you the choice — whether you want simplicity, controllability, or are willing to engage more for higher incentives, you can find corresponding entry points.
One more thing to note: USDD 2.0 and USDDOLD should not be mixed up. The old version was more algorithmically stable, while the upgraded USDD 2.0 in January 2025 is based on over-collateralization and decentralization, with token attributes being more 'natively on-chain', emphasizing characteristics like being unmodifiable and non-freezable. The economic model is also moving towards 'self-sustaining', reducing reliance on external subsidies. For me, these changes are key to determining whether it can last long-term.