Stablecoins are the "ballast" of the cryptocurrency world, but this precision machine, USDD, ticks away on the surface to maintain the stability of 1 dollar, while the gears inside hide an unknown power game. Today, let's set aside those complex terms and discuss who really calls the shots with USDD, and whether decentralization is a slogan or a reality?

1. Stability does not rely on "deities", but on two sets of gears

USDD maintains 1 dollar mainly through two mechanisms:

First set: the market's "automatic trading machine"
In simple terms, it's driven by arbitrage - when USDD rises to 1.01 dollars, anyone can exchange 1 dollar's worth of TRX (the native token of TRON) for 1 USDD, then sell it to profit from the difference; if it drops to 0.99 dollars, they can buy back USDD at a low price, destroy it to exchange for 1 dollar's worth of TRX, and make another profit. It's like an automatic balancer, driven by interests to pull the price back to 1 dollar.

Second set: The 'safe' of the Bohuan Reserve.
However, relying solely on the market is not enough. Behind USDD is an institution known as the 'Bohuan Reserve' (TRON DAO Reserve), which acts like a crypto central bank, holding a bunch of assets like Bitcoin, USDT, TRX as reserves. If the market fluctuates violently, the Bohuan Reserve uses its reserves to buy and sell USDD to stabilize the market. Currently, the collateral rate often exceeds 100%, meaning that for every 1 USDD you have, there may be other assets worth 1.2 locked behind it, which sounds quite solid.

Two, whose hands is the power really in?

This gets subtle—on the surface, USDD is a 'decentralized stablecoin', but the real key to the winding is held by the Bohuan Society.

  • Minting rights are not open: Ordinary users cannot arbitrarily mint USDD; only the Bohuan Society and whitelist institutions can print new coins.

  • Who manages the reserves: What assets are collateralized and in what proportions are determined by the Bohuan Society, with no voting rights for the community.

  • Control measures are not transparent: In extreme market conditions, how does the Bohuan Society operate the reserves? The outside world often only knows afterwards.

Thus, USDD resembles a semi-centralized hybrid: market arbitrage is the 'decentralized gear', while the Bohuan Society's control is the 'centralized spring'. Decentralization is the ideal, but in order to resist risks, the reality is to let a professional team firmly grip the steering wheel.

Three, what does USDD rely on to carve out a path in the red sea of stablecoins?

Faced with giants like USDT and USDC, USDD's strategy is very clever.

  • Binding to the TRON ecosystem: On the TRON chain, USDD is the 'preferred stablecoin' for many DeFi protocols, making it convenient to use and offering high-yield mining temptations.

  • Leveraging the interest-earning property: Storing USDD can earn interest (such as with the sUSDD protocol), where users not only seek stability but also profit.

  • Multi-chain expansion: Not just staying on TRON, but also running to Ethereum and BNB Chain to find users.

These strategies have allowed USDD to take root in the TRON ecosystem, becoming the 'blood bank' of the on-chain economy.

Four, where do the risks hide? Don't be blinded by high yields.

  1. The risk of decoupling has not disappeared: Even if the collateral rate exceeds 100%, if the prices of collateralized Bitcoin and TRX collectively plummet, USDD may still struggle to maintain a value of 1 dollar.

  2. Centralization is a double-edged sword: The Bohuan Society's quick decision-making can save the market, but it also means concentrated power. If the team makes a wrong decision or suffers a hacker attack, the impact is global.

  3. Regulatory Sword Hanging: Global regulatory tightening on stablecoins raises the question of whether this semi-centralized model counts as securities or currency? With a shift in policy direction, it may face restructuring.

Five, how should ordinary users view USDD?

  • If you pursue stability: Pay attention to the collateral rate data published on the Bohuan Society's official website; the higher the collateral rate, the thicker the safety cushion.

  • If you are after yields: Understand that high APY (annual percentage yield) often corresponds to higher risks, and don't put all your stablecoin assets at stake.

  • Long-term observers note: In the future, can USDD introduce more community governance (such as allowing token holders to vote on reserve assets)? This is a key step towards true decentralization.

Conclusion: The power game of stablecoins has just begun.

USDD is like a mirror, reflecting the real dilemmas of the crypto world—complete decentralization can easily get out of control (as seen in the Luna collapse), while complete centralization contradicts the spirit of blockchain. Hence, the hybrid model has become a compromise, but the tug-of-war between 'power' and 'depowering' will continue for a long time.

In the future, if USDD can gradually hand over the winding gears to the community, it could become a true cornerstone of decentralized finance; if it is always controlled by a few, it is just another centralized product wearing a decentralized cloak. As a user, understanding who is winding the gears is more important than listening to stories.

@USDD - Decentralized USD #USDD以稳见信