The Truth About Stablecoins in the Crypto World: Why USDD2.0 is Worth Paying Attention To
Recently, the stablecoin market has been quite interesting. USDC decoupled to 0.87 during the collapse of Silicon Valley Bank, DAI frequently deviates from its peg, and even USDT experiences occasional fluctuations. However, one stablecoin has shown remarkable stability during this chaos: USDD.
To be honest, my first impression of USDD wasn't great. After all, the algorithmic stablecoin model of USDDOLD is basically playing with fire. But USDD2.0 is a completely different story.
What is the core change? Over-collateralization. It is no longer a model maintained by algorithms and faith, but rather backed by real assets. All collateral is transparently verifiable on-chain, and you can check it anytime you want. This level of transparency is quite rare in the stablecoin space.
What's even more interesting is the yield mechanism. A 12% base APY is already attractive in the current market environment. Especially with the staking model of sUSDD, which supports multi-chain operations and offers good liquidity. Recently, Binance Wallet also launched a Yield+ event, where the APY can reach 25%+, although it's time-limited, it is indeed appealing.
Of course, what impressed me the most is still the PSM mechanism. A 1:1 exchange with no slippage makes the arbitrage space nearly minimal. This design is theoretically elegant, and the actual results are indeed good. After the launch of USDD2.0, its price has stabilized around 0.999, which is quite robust in the current market.
However, that said, no matter how good the mechanism is, it still needs time to be validated. USDD2.0 has just launched, and the real test is yet to come. But at least from the current data, this project is indeed moving in the right direction.
The stablecoin market needs more innovations like this, rather than just copying and pasting.