USDD: The Core Value and Development of Decentralized Over-Collateralized Stablecoins
USDD is a decentralized stablecoin issued by the TRON DAO Reserve, pegged to the US dollar at a 1:1 value, with a current price of approximately 7.06 yuan and a market capitalization of 4.9 billion yuan, occupying an important position in the stablecoin sector. As the upgraded version 2.0, its core advantage lies in the integration of over-collateralization and algorithmic adjustment mechanisms, fundamentally distinguishing it from the vulnerabilities of early pure algorithmic stablecoins.
USDD uses high liquidity assets such as TRX, USDT, and USDC as over-collateral, maintaining a collateralization rate of over 120%. All reserve assets are stored in publicly verifiable on-chain vaults, fundamentally ensuring value stability. At the same time, the Peg Stability Module (PSM) supports USDD's 1:1 exchange with mature stablecoins with no slippage, automatically correcting price deviations through arbitrage mechanisms.
In terms of ecological expansion, USDD has achieved multi-chain compatibility and recently expanded its coverage to 30 markets in the European Economic Area for rapid transfer scenarios through strategic integration with Revolut, while also integrating Allora AI predictive features to enrich DeFi applications. Its governance is led by the TRON DAO Reserve, utilizing public market operations, interest rate adjustments, and other monetary policy tools to regulate supply and demand, ensuring market resilience.
Compared to USDT's low-interest security and USDe's high-risk, high-return profile, USDD balances stability and practicality, suitable for diverse scenarios such as cross-border payments and DeFi lending.