#usdd以稳见信
USDD (Decentralized USD) is a decentralized stablecoin launched by TRON DAO Reserve in May 2022, pegged to the US dollar at a 1:1 value, supported by the TRON ecosystem led by Justin Sun. It operates on multiple chains including TRON, Ethereum, and BNB Chain, supporting minting and redemption without centralized intervention, ensuring tamper-proof and non-freezing characteristics.
Nowadays, when people mention Sun's project, they tend to feel a bit nervous, haha 😂
Actually, Tron has been a relatively stable public chain for many years, DYOR!
Core features: USDD adopts an over-collateralization mechanism, using assets like TRX, BTC, USDT as collateral, with a minimum collateralization ratio of 120%, currently over 200%. This maintains stability through smart contracts and integrates the PSM (Peg Stability Module) to achieve 1:1 swaps with USDT/USDC, guarding against de-pegging risks.
Additionally, the USDD 2.0 upgrade has enhanced security and decentralization, responding to TRON DAO proposals, and has been successfully launched.
Advantages: As a DeFi infrastructure, USDD provides a low-volatility payment tool, facilitating cross-border transactions and lending ecosystems. Decentralized governance empowers community decision-making, avoiding risks from single institutions, making it suitable for newcomers to blockchain. Risks: High volatility of collateral may trigger de-pegging (like the Terra UST collapse precedent); algorithmic vulnerabilities or market panic could lead to a bank run. Regulatory uncertainties (like the impact of the GENIUS Act) also pose risks.
Current situation and outlook: As of November 2025, the market cap of USDD is approximately $425 million, and the price is stable at $1.
In a stablecoin market exceeding $250 billion in scale, USDD targets a niche market, with future potential in DeFi expansion and regulatory compliance. If collateral optimization and ecosystem integration deepen, it could become a growth engine for TRON. However, investors should be cautious of volatility and are advised to diversify their allocations.
The stablecoin sector's heat is not fading; everyone can pay attention and refer to it, as there are still quite a few projects. @USDD - Decentralized USD
