Buy USDD

What is USDD?

USDD is a decentralized stablecoin pegged to the US dollar at a 1:1 ratio. It is designed to provide a stable value for a variety of financial transactions and operates on multiple blockchains, including TRON, Ethereum, BNB Chain, and others.

How does USDD work?

USDD functions by maintaining stability through over-collateralization and specific mechanisms. It is backed by a diversified pool of digital assets like TRX, BTC, and USDC, with a minimum collateral ratio of 120%. The Peg Stability Module (PSM) allows for swaps of USDD with other stablecoins at a 1:1 rate, helping maintain its value. The TRON DAO Reserve manages USDD, and it operates with a mint-and-burn mechanism to sustain its dollar peg.

What are the potential use cases for USDD?

USDD is utilized in multiple scenarios:

• DeFi Applications: As a stable asset for lending, borrowing, yield farming, and liquidity provision.
• Trading and Hedging: Offers a stable trading pair and helps hedge against volatility.
• Cross-Border Transactions: Facilitates fast, cost-effective international payments.
• Real-World Payments: Accepted by some merchants as a payment method.
• Potential Industries: Useful for treasury payments, emerging markets, and potentially within IoT for micro-payments.

What is the history of USDD?

USDD was launched by the TRON DAO Reserve in May 2022, spearheaded by Justin Sun, the founder of TRON. Initially announced in April 2022, USDD aims to offer a decentralized stablecoin option and has since expanded its presence across various blockchains. It was declared legal tender in the Commonwealth of Dominica in October 2022. The stablecoin employs technologies such as over-collateralization and a mint-and-burn mechanism to maintain its peg to the US dollar. However, it faces challenges like regulatory uncertainties and competition from established stablecoins for broader market adoption.