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#USDD Stable Trust
$USDD (@USDD - Decentralized USD) is a decentralized USD stablecoin in the TRON ecosystem, aiming for a 1:1 peg to the US dollar. It maintains its price through over-collateralization, PSM price stability modules, and on-chain transparency mechanisms, but the trust threshold is higher than mainstream stablecoins like USDT/USDC.
Core Mechanism of Version 2.0:
- Over-Collateralization: Supports collateral such as TRX and USDT, with a collateralization rate above 100%. Automatic liquidation auctions occur below the threshold to mitigate volatility risks;
- PSM Module: Near-zero fee 1:1 instant exchange between USDD and USDT allows arbitrageurs to quickly correct deviations and reduce the probability of de-pegging;
- Transparency and Auditing: The contract has been audited by ChainSecurity, and collateral and reserves can be checked in real-time on TRONSCAN, the USDD official website, and TDR;
- TRON DAO Reserves: Provides liquidity and price intervention during extreme market conditions.
In terms of stability, after the upgrade to 2.0, USDD has mostly fluctuated narrowly around $1, with a decrease in the magnitude and frequency of de-pegging. However, historically (especially during the 1.0 period), it experienced de-pegging due to panic and insufficient liquidity, relying on the intervention of the wave reserve to recover. If TRX plummets and PSM liquidity is exhausted, the risk of extreme de-pegging still exists.
Trustworthiness Controversy: Limited decentralization, significant power held by wave reserves and whitelisted institutions; highly concentrated collateral in TRX and USDT, making risks easily transmissible; overall liquidity and acceptance are still significantly lower than USDT/USDC.
Conclusion:
Suitable for short-term trading and use within the TRON ecosystem, small amounts for quick in-and-out transactions, combined with PSM and over-collateralization, making risks relatively controllable; not suitable for long-term savings and large allocations, as such funds are better advised to use compliant stablecoins like USDC. Always monitor collateralization rates, reserves, and on-chain data before use.
$USDD (@USDD - Decentralized USD) is a decentralized USD stablecoin in the TRON ecosystem, aiming for a 1:1 peg to the US dollar. It maintains its price through over-collateralization, PSM price stability modules, and on-chain transparency mechanisms, but the trust threshold is higher than mainstream stablecoins like USDT/USDC.
Core Mechanism of Version 2.0:
- Over-Collateralization: Supports collateral such as TRX and USDT, with a collateralization rate above 100%. Automatic liquidation auctions occur below the threshold to mitigate volatility risks;
- PSM Module: Near-zero fee 1:1 instant exchange between USDD and USDT allows arbitrageurs to quickly correct deviations and reduce the probability of de-pegging;
- Transparency and Auditing: The contract has been audited by ChainSecurity, and collateral and reserves can be checked in real-time on TRONSCAN, the USDD official website, and TDR;
- TRON DAO Reserves: Provides liquidity and price intervention during extreme market conditions.
In terms of stability, after the upgrade to 2.0, USDD has mostly fluctuated narrowly around $1, with a decrease in the magnitude and frequency of de-pegging. However, historically (especially during the 1.0 period), it experienced de-pegging due to panic and insufficient liquidity, relying on the intervention of the wave reserve to recover. If TRX plummets and PSM liquidity is exhausted, the risk of extreme de-pegging still exists.
Trustworthiness Controversy: Limited decentralization, significant power held by wave reserves and whitelisted institutions; highly concentrated collateral in TRX and USDT, making risks easily transmissible; overall liquidity and acceptance are still significantly lower than USDT/USDC.
Conclusion:
Suitable for short-term trading and use within the TRON ecosystem, small amounts for quick in-and-out transactions, combined with PSM and over-collateralization, making risks relatively controllable; not suitable for long-term savings and large allocations, as such funds are better advised to use compliant stablecoins like USDC. Always monitor collateralization rates, reserves, and on-chain data before use.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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