USDD maintains its peg through high excess collateralization. This is the true pillar, especially during periods of extreme market volatility.

The TRON DAO manages a pool of crypto assets primarily consisting of the TRON native token TRX, occasionally holding BTC as well, and also mixes in a large amount of stablecoins such as USDT and USDC.

They maintain a collateralization ratio far above 100%, often reaching 170% or even exceeding 300% in recent years. While there may be slight dips at times, they consistently maintain ample buffers.

This additional buffer can absorb shocks. Even if highly volatile assets like TRX or BTC experience significant declines, there is still enough value to cover all circulating USDD.

During periods of extreme volatility, over-collateralization plays a major defensive role, preventing situations where forced de-pegging occurs, as seen in purely algorithm-driven mechanisms.

They also provide tools such as the "Peg Stability Module" that allows users to swap USDD with other stablecoins at a 1:1 ratio, with no slippage. This can quickly create arbitrage opportunities, helping prices to revert.

Super representatives and monetary policy also play a role. Supply or liquidity will be adjusted as necessary.

But the core assurance lies in the excess collateral. It provides a breathing space during crises, allowing the system to endure severe volatility without completely collapsing.

We have also seen some minor fluctuations during past crises. But high collateral ratios prevented a total collapse of the system. This is precisely what supports the system in times of severe adversity. #USDD @USDD - Decentralized USD