USDD: A Review of Decentralized, Over-Collateralized Stablecoins

USDD is one of the most talked-about projects in the current decentralized stablecoin space, aiming to provide users with a safer and more transparent alternative than traditional centralized USD stablecoins. USDD employs an over-collateralization mechanism, where the value of collateral locked within the system exceeds the total amount of issued stablecoins, thereby enhancing risk resistance during market fluctuations, reducing the risk of de-pegging, and improving overall stability.

One of the core design philosophies of USDD is complete decentralization. Its collateral assets are distributed across various on-chain resources and do not rely on any single custodial entity; all collateral ratios and system data can be queried in real-time on-chain. This transparency enables users and developers to independently verify the health of the system.

As the DeFi ecosystem continues to expand, USDD has gradually been integrated by multiple mainstream protocols, serving as a medium of exchange, liquidity pair asset, and collateral for lending. Its transparent and permissionless characteristics make it an important choice for users seeking both stability and decentralization.

In the context of intensified competition among stablecoins, USDD is consolidating its position in decentralized finance through its security and transparency.