Regarding which ecosystem relies on USDD the most, to be honest, it’s not as simple as you think. USDD is the 'decentralized dollar stablecoin' issued on the Tron blockchain, pegged to the dollar, supported by various reserves and algorithms. This is intended to maintain its value steadily, serving as a digital substitute for the dollar in the crypto world. But to say which ecosystems cannot do without it, that would require a detailed analysis.
#USDD以稳见信 @USDD - Decentralized USD
Firstly, stablecoins are the 'glue' of the DeFi world. With them, people can trade, lend, and earn without constantly swapping money between volatile currencies like Bitcoin and Ethereum. However, stablecoins vary in quality; some are backed by real reserves, like USDC and USDT, while USDD relies on over-collateralized crypto assets along with algorithms for backing.
So, which ecosystems love to use USDD? Tron is definitely one. After all, USDD was funded by Tron DAO, and Tron is actively promoting it, so the projects on Tron will surely be the first to use it. Tron focuses on speed and low fees, making it particularly suitable for emerging markets like Southeast Asia, Latin America, and some parts of Africa, where people might distrust their local currencies or find it hard to access banking services.
In Tron, USDD is used quite a bit. For example, platforms like JustLend allow users to deposit USDD to earn interest or use it as collateral to borrow other tokens. It also appears in decentralized exchanges like SunSwap, where traders use USDD as a trading pair to avoid worrying about price fluctuations. Moreover, Tron's transaction fees are almost negligible, making it fast and cheap to transfer USDD, enhancing its convenience.
Let’s talk about BitTorrent Chain, the cross-chain infrastructure created by Tron that connects Tron with Ethereum, BSC, and others. USDD has also crossed chains, so people can carry USDD while transferring between different chains. However, outside Tron, there are still not many people using USDD.
Poloniex, the exchange, is owned by Tron founder Justin Sun and has listed USDD early on. This gives USDD liquidity and a place to trade. However, exchanges are merely a gateway and cannot be considered a complete ecosystem.
Outside of the Tron circle, USDD is not as prominent. Ethereum has its own stablecoin system, such as USDC, DAI, and now a new USDe. People on Ethereum prefer stablecoins with transparent reserves and audits. As for USDD's reserves, although they have been improving, they are still controversial, especially after the Terra/Luna collapse in 2022, when people became particularly cautious about algorithmic or partially collateralized stablecoins.
Chains like Solana, Avalanche, and Cosmos also have their own 'home' stablecoins, usually from big brands. In these places, USDD is more like a 'you can use it if you want' rather than 'you must use it'.
So, is there any ecosystem that is 'heavily reliant' on USDD? No, not really. Unlike Ethereum, which heavily relies on USDC, or BSC in the past that relied on BUSD, USDD feels more like a supporting character rather than the main actor. Of course, some people use it, and at peak times, there might be tens of billions in circulation. But how is the liquidity? Is the depth sufficient? Is there enough confidence? These are difficult to ascertain.
It is often used by people because there are incentives. For example, high-yield mining projects attract people to deposit USDD with high annualized returns. But in the DeFi circle, people are used to it; high returns often mean high risks. Without incentives, people will disperse.
There is also a geopolitical factor. In some countries, like Argentina and Nigeria, if the local currency depreciates significantly or there are foreign exchange controls, any token pegged to the dollar becomes attractive, even if its transparency is not that high. For these people, as long as USDD is easy to obtain, transfers are fast, and local P2P transactions accept it, it is no different from USDT.
But it must be understood that using it and relying on it are two different things. You can use something, but that doesn't mean you can't live without it. True reliance means that if it disappears one day, the entire system would collapse or face significant issues. But now, even if USDD vanished, Tron would certainly be impacted, but users would likely just switch to USDT or the currently popular FDUSD.
Even within Tron, USDT's trading volume dominates. USDD can only rank second or third, depending on the time period. So it is just an ordinary piece of furniture, not a foundation.
Tron DAO has been working hard to boost everyone's confidence by publishing reserve reports and adding real-world assets like US short-term treasury bonds as reserves. This definitely helps. But trust in the crypto world is very fragile and must be earned daily.
Many people forget that stablecoins are not just technology; they are also a social contract. You have to believe that it can always peg to the dollar, be readily convertible, and that someone is watching over it. USDD is also working towards this, but it hasn't fully arrived.
However, to be fair, despite the many picky points, it is still functioning in a real way. It is used for payments, repayments, and international remittances. These are real utilities, even if it is not in the spotlight.
In games or metaverse projects on Tron, USDD sometimes appears as a currency option in games. Although not the main one, it is at least a stable alternative. This market is not large but is slowly growing.
The NFT market is similar; some allow you to bid with USDD to avoid price fluctuations during auctions. This is more for convenience than necessity.
Developers on Tron might also directly use USDD, as it is native, has good compatibility, and is supported by tools. This is a form of inertia rather than genuine preference.
Currently, there is no major project that 'only recognizes' USDD as a stablecoin. In DeFi, adaptability is essential for survival.
In wallets, you can also see USDD, like in TronLink, where it sits alongside USDT and TRX. People find this normal, but it doesn't have any special privileges.
There is also a regulatory shadow. Global regulation of stablecoins is becoming stricter. USDD, at least theoretically, is decentralized and aims to be ambiguous, but regulators prefer clear issuers, like Circle for USDC. This uncertainty can deter institutions.
As for retail investors? They are not that picky. As long as it is cheap, fast, and can preserve value, they are willing to use it. USDD meets these criteria when things are going smoothly.
Occasionally, it may decouple from the dollar, dropping to $0.97 or rising to $1.03. In DeFi, such fluctuations could trigger liquidations or arbitrage. So, projects using USDD need to consider this price difference, unlike the stability of USDC.
Arbitrageurs are also helping to keep USDD stable. They buy when it is below $1 and sell when it is above $1, utilizing the TRX minting and burning mechanism. It’s like a cycle, but the premise is that liquidity must be sufficiently deep.
Liquidity remains that unnoticed bottleneck. You can issue as much USDD as you want, but if there isn’t enough trading depth, large transactions will affect the price.
In centralized exchanges, USDD's liquidity is reasonable, but in decentralized exchanges, aside from a few large pools, liquidity drops significantly.
This will affect composability, which is the ultimate goal of DeFi. If USDD cannot seamlessly integrate into every project, people will not rely on it.
However, for those 'natives' of Tron, using USDD has become a habit, like muscle memory. When you type 'USD', USDD pops up.
Education is also crucial. Tron's marketing efforts have consistently pushed USDD, conducting seminars, AMAs, and bounty projects. This is shaping people's perceptions.
But marketing cannot replace reality. If the reserves are insufficient, the peg will collapse, and once it collapses, trust will be hard to rebuild.
The USDD team is open to improvements, shifting from a purely algorithmic model to a hybrid one, adding more real-world assets and increasing transparency. These are all progressions, but they must be assessed annually, not monthly.
Meanwhile, competitors are not idle. USDC has also entered Tron. Now users have a choice: to go for the native stablecoin of Tron, which might yield higher returns; or to choose an audited stablecoin, which presents lower risks.
This choice of seeking yield or security is the awkward position that USDD currently occupies. It is not a panacea, but for some people, it is just right.
During bear markets, people seek safe havens, and the demand for stablecoins increases. USDD can benefit from this, but only temporarily.
How about in a bull market? Everyone is chasing high yields, investing in high-risk assets. USDD then becomes less noticeable.
Its lifecycle is volatile, following the market rather than leading it.
There is also a factor of identity recognition. Tron wants to establish its own crypto world and does not want to be just a satellite of Ethereum. USDD is part of its realization of this 'sovereignty'. It is Tron’s own dollar.
This resonates with those developers who want to develop on Tron, rather than just treating Tron as a cost-saving protocol layer.
So, while USDD may not be the most commonly used stablecoin in absolute numbers, it holds significant symbolic importance for Tron's 'independence'.
Just like a country issuing its own currency, it doesn't mean it's better than the US dollar, but because it belongs only to itself.
In the crypto world, this narrative of sovereignty is powerful.
But no matter how good the story is, it cannot be eaten. Real usage is what matters.
As for actual usage... it's just mediocre. It's fine within its small circle, but doesn't have much presence outside.
No ecosystem has collapsed because of the absence of USDD. Nor has any ecosystem shone brightly just because it has USDD.
It is merely a tool, reliable in the hands of knowledgeable people and in the right situations.
For cross-border remittances, such as from the Philippines to Vietnam, USDD transfers are both fast and cheap. This has real value.
Making small payments in decentralized applications? That’s possible, although TRX itself might be cheaper.
Is it chosen for treasury management in DAOs? Almost nobody picks it. There are too many uncertainties.
Is it used for institutional fund management? It is hardly seen.
But for ordinary people in high-inflation countries looking to digitalize their savings for value preservation? USDD is definitely one of the choices.
This is where USDD's true vitality lies—not in conference rooms, but in real-life experiences.
It doesn't need to be the largest to play a role. It just needs to work well, quietly, day after day.
So far, despite experiencing some storms, it has managed to pull through.
It can't be said to be perfect, and there will always be questions raised.
But it is still here.
It is still in circulation.
It is still being used—especially in places where other choices are limited or expensive.
So, to directly answer the question: the Tron ecosystem is the most reliant on USDD—not because it has no other choices, but because USDD has already integrated into its infrastructure, incentive mechanisms, and vision.
What about elsewhere? It's there, but whether you use it or not is up to you.
In the crypto world, unless there are significant changes, very few 'optional' things can become 'essential'.
Perhaps it is about tighter integration.
Perhaps due to favorable regulatory policies.
Perhaps it is a breakthrough in reserve transparency.
Before that, USDD was still a crucial piece of the puzzle for Tron—supporting, stabilizing, and propelling—but it hasn’t yet borne the entire burden.
It is more like a jack-of-all-trades rather than the most important person.
But sometimes, what an ecosystem needs is precisely such a role.
