Recently, a staking activity for USDD was launched, and right from the start, it attracted various overwhelming posts about high returns. Therefore, Ah Hao specifically looked into the activity and, from a personal perspective, explained it simply for beginners and those who haven't participated or are on the fence about whether it’s worth joining‼️
1. To fully understand the activity, you must first understand what USDD is?
USDD is a stablecoin issued by TRON founder Justin Sun, similar to USDT, pegged to the US dollar at a 1:1 ratio, focusing on over-collateralization and multi-chain compatibility, used in DeFi, payments, and other scenarios. However, USDT is a centralized token, while USDD is a decentralized token.
2. How is the USDD revenue calculated on Binance wallet?
The promotion for this event is that within 30 days, a total of 300,000 USDD rewards can be shared. The staking path is USDT → USDD → sUSDD
✅ The minimum participation amount is 100 USDT
✅ Daily distribution of 10,000 USDD rewards
✅ No participation TVL limit
Those who have participated in wallet staking should be clear about this process. The process is fine, and everyone staking mainly cares about two issues.
First revenue 🉐
The second risk ⚠️
Let's first talk about the revenue:
It has a fixed 12% basic annualized return, plus a floating TVL deposit rate, then it is the total annualized return!
For example, based on the snapshot interest rate of 12% plus 1.88% at the time I am writing this post, a total of 13.88% will be used for revenue calculation:
Daily interest = Deposit U * Annualized interest rate / 365
That is: Deposit 1000 USDT * 13.88% / 365 = 0.38 U
That is: Deposit 7000 RMB for one day yields 2.66 RMB
In terms of annualized rate, this interest rate is indeed quite considerable, but this activity only lasts for 30 days!
3. Is it recommended to deposit?
Actually, this depends on your own capital and pressure-bearing ability. After all, this interest rate is significantly higher compared to bank fixed deposits, and during the event, it is equivalent to having Binance's strong backing. Generally, once the event ends, it is not a big problem to immediately withdraw the stake. Moreover, the deposited amount does not count towards the Alpha activity balance points!
So if you have idle large funds for wealth management, this is indeed a good choice. However, if you are just planning to deposit 100 U to experience the participation feeling, it is not recommended for retail investors!
As of now, the data has locked 225 million USD, indicating that large participants and market enthusiasm are relatively high! USDD has successfully passed 5 audits by CertiK and Chainsecurity, and the probability of decoupling is still relatively low. Now cooperating with Binance, in my opinion, the safety is still relatively high.
