Stablecoins in the Era of Risk: The Security Architecture and Yield Mechanism of USDD
Defining value with security, winning the future with stability -- Seeking benefits amidst stability
Recently, there has been a lot of discussion about USDD on Binance Square, and everyone is asking: What exactly is USDD? How does it differ from USDT and USDC? Is it worth participating? How does the yield come about? What are the risks?
I have also researched USDD's on-chain data and the latest developments, and here I share some personal views.
#USDD以稳见信 USDD is the dollar stablecoin of the TRON ecosystem, now upgraded to version 2.0, completely shifting to an over-collateralized model. It is minted through excessive collateralization with assets like TRX and USDT, maintaining a high collateral ratio, and all data is publicly available on-chain, allowing for real-time verification. Compared to centralized USDT and USDC, it is more transparent, and users control their assets without the worry of being frozen. It has been deployed on multiple chains such as TRON, Ethereum, and BNB Chain, with a circulation exceeding 770 million dollars, and its price is firmly pegged near 1 dollar.
Yield is a concern for many; currently, staking USDD can be exchanged for sUSDD, which is the yield-bearing version, with a base annualized rate of about 12%, fully automated on-chain compound interest, with no lock-up period, allowing for deposits and withdrawals at any time. Additionally, there are activities like Binance Wallet's Yield+, where you can exchange USDT for USDD and then stake it, potentially achieving higher yields. Recently, there is also a reward pool of 300,000 USDD, distributing 10,000 daily. Storing USDD on JustLend or HTX Earn can also yield around 10% stable returns. The Smart Allocator on-chain investment strategy has already made over 7 million dollars in profit, and future yields are expected to be more sustainable, not relying on external funding.
Of course, there are risks; in extreme market conditions, if collateral assets drop significantly, it may temporarily deviate from its peg. However, the PSM module supports 1:1 no-slippage exchanges with mainstream stablecoins, and arbitrageurs can quickly bring it back. Compared to the lessons learned from the collapse of some algorithmic coins, the mechanism of USDD withstands scrutiny.
In summary, in the increasingly competitive stablecoin market of 2025, USDD, with its decentralization, transparency, and reliable yields, is worth a small position trial. Start small, and monitor the data as you go. DYOR, brothers.
