USDD is a stablecoin brought into existence by the TRON DAO Reserve. This digital currency is linked to the value of the US dollar and is designed to offer a dependable, decentralized means for conducting blockchain transactions. You can use USDD for various purposes such as payments, trading, staking, and as a store of value.
The stability of USDD is maintained through backing by several cryptocurrencies, including Bitcoin, Ethereum, and TRON. To ensure its stability and security, the reserve holds more assets than the amount of USDD in circulation, a process known as over-collateralization.
Who Are the Founders of USDD?
Justin Sun, the driving force behind TRON, also founded the USDD stablecoin. Released on May 5, 2022, USDD operates on the TRON blockchain and can also be accessed via Ethereum and BNB Chain.
What Makes USDD Unique?
USDD is created and redeemed through smart contracts on the TRON network, facilitating rapid and secure transactions along with transparent and verifiable records of USDD's issuance and redemption. It also enables participation in staking pools.
A decentralized assembly of stakeholders manages and develops USDD, making decisions for the larger community through the TRON DAO Reserve (TDR). TDR is the main body responsible for safeguarding USDD's value and maintaining a consistent exchange rate.
It was set up as a distinct financial entity to shield the Tron ecosystem from prolonged economic downturns, financial turmoil, and fluctuating exchange rates for both centralized and decentralized Tron stable currencies.
TDR's key functions include acting as a lender of last resort, regulating risk-free interest rates, managing liquidity by controlling the flow of funds, and executing monetary and exchange rate strategies.
How Many USDD Coins Are There in Circulation?
The USDD stablecoin is designed to uphold a 1:1 exchange rate with the US dollar. This means there is an equivalent amount of US dollars held in reserve for every USDD coin in circulation.
A total of $2 billion in USDD has been approved, with $1.25 billion authorized but not yet distributed.
By June 2023, the total USDD supply stood at roughly $741K, while the total collateral amounted to about $1.2 billion, primarily in TRX, BTC, and TUSD.
How Is the USDD Network Secured?
The security of any stablecoin is largely dependent on the stability of the assets backing it. Consequently, the USDD protocol over-collateralizes with highly liquid assets such as BTC, TUSD, and TRX.
To maintain currency stability amid changes in reserve asset values due to negative market conditions, the protocol's monetary policy allows it to dynamically adjust the reserve asset ratios.
Where Can You Buy USDD?
USDD is available on various cryptocurrency exchanges, including KuCoin, PancakeSwap (V2), Uniswap (V3), SushiSwap, Gate.io, Poloniex, Huobi, Bybit, and several others.
