USDD/USDD#132 24

What is USDD (USDD)

USDD, a decentralized stablecoin managed and regulated by TRON DAO reserve and pegged against the US Dollar with a 1:1 ratio, means every crypto is tied to the value of the US Dollar.

The stablecoin USDD was launched on May 5, 2022, and the first exchanges to list the USDD were Ethereum and BNB Smart Chain and is among the top 10 stablecoins with a market cap of $725 million as of 2024. USDD was launched with a starting supply of around 100 million, and via BitTorrent’s cross-chain protocol, made USDD available on the Ethereum blockchain and BNB Smart Chain.

USDD possesses assets of $442 million in USDT, $235 million in BTC, and $580 million in TRX, which serve as collateralized assets and support asset value. As a result, more than twice the USDD value supports every USDD trade in the market. Because of this excessive collateralization, USDD is unable to de-peg the USD. 

Since USDD is a stablecoin, it is neither an inflationary nor a deflationary token. Stablecoins backed by fiat currencies, are introduced to preserve price stability. 

Who is the founder of USDD?

Justin Sun, the founder of USDD, is a Chinese businessman and the creator of the Tron Blockchain network. He earned an graduation in MA in Political Economy from the University of Pennsylvania and a BA in History from Peking University. 

In 2019, Sun was notably remembered because of his winning movement in an auction launch with Warren Buffett the great investor of all time, reaching mind-boggling sums and making a headline with the “crypto entrepreneur spent over $4.5 million to become the highest bidder”.

How does USDD work?

1. Basket of assets 

USDD is collateralized by what seems to be $580 million worth of TRX, $235 million worth of BTC, and $442 million worth of USDC, whereas USDT was primarily collateralized by LUNA.

2. Over-collateralization.

In turn, this asset basket represents more than 200% of the USDD's current worth. To put it another way, the market is backing each USDD by more than double its worth. The goal of this excessive collateralization is to stop the USDD from de-pegging to the USD. 

3. Burning Mechanism

Users can burn one USDD for one USD worth of TRX when the price of USDD is less than one USD. Additionally, users can burn one USD of TRX for one USDD when the price of USDD exceeds one USD. The goal is to maintain the USDD's 1:1 relationship with the USD. 

 

4. Peg Stability Module (PSM)

Customers can also exchange their USDD tokens for other stablecoins, such as USDT or USDC, at a 1:1 rate with 0% slippage using USDD's open-source "Peg Stability Module" program. This ensures that customers receive precisely the same amount of cryptocurrency as they saw at the time of the transaction. This PSM is merely another instrument intended to increase the USDD's stability.  

Combining these concepts of USDD enhances its scalability and security.

History of USDD coin

In addition to being accessible on Ethereum and the BNB Chain, the USDD stablecoin project was introduced on the TRON blockchain on May 5, 2022. It was developed by TRON network founder Justin Sun and is issued by the TRON DAO Reserve, which is based on the value of the US dollar.

It was created to provide blockchain transactions with a dependable, decentralized cryptocurrency. It may be used as a store of value, for trade, for payments, and staking.

Bitcoin, Ethereum, and TRON are among the cryptocurrencies that support the USDD stablecoin. Stability and security are ensured by the overcollateralized reserve, which possesses more assets than the amount of USDD currently in circulation.  

How can you buy USDD?

1. Download any of the crypto exchange apps, available free on the Apple App Store or Google Play Store.

2. Complete the simple verification and sign-up process.

3. Fund your account with USDT using bank transfer, Apple Pay, or a debit/credit card.

4. Once funds hit your account, you can start buying USDD.

Where to buy USDD?

The tokens USDD are traded on both Exchanges, decentralized and centralized exchanges, and the popular exchanges that offer USDD are SunSwap V3 and other options are Tokpie and Trubit.

Wallets For USDD?

We have Trust Wallet, Binance Wallet, and Atomic Wallet are a few examples. Your tokens can be safely stored in these wallets; just make sure the wallet you use to store your assets is reliable.