#usdd以稳见信
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 Module), 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 ratio above 100%. Below the threshold, automatic liquidation auctions occur to mitigate volatility risks;
- PSM module: USDD exchanges with USDT at near-zero fee 1:1, allowing arbitrageurs to quickly correct imbalances and reduce the probability of decoupling;
- Transparency and auditing: Contracts audited by ChainSecurity, collateral and reserves can be checked in real-time on TRONSCAN, USDD's official website, and TDR;
- TRON DAO reserves: Provide liquidity and price intervention in extreme market conditions.
In terms of stability, after the upgrade to 2.0, USDD mostly fluctuates narrowly around 1 dollar, with reduced magnitude and frequency of decoupling. However, historically (especially during the 1.0 period), there were instances of decoupling due to panic and insufficient liquidity, relying on intervention from the Wave Reserve for recovery. If TRX crashes or PSM liquidity is exhausted, extreme decoupling risks remain.
Trustworthiness controversy: Limited decentralization, significant power held by the Wave Reserve and whitelisted institutions; collateral is heavily concentrated 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, such funds are better recommended to use compliant stablecoins like USDC. Before use, be sure to monitor collateralization ratios, reserves, and on-chain data.
