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Primary Uses of USDD
USDD was designed to bridge the gap between volatile crypto assets and everyday practical finance. Here is how it is primarily used today:
Earning Passive Yields (sUSDD): With the launch of USDD 2.0, the protocol introduced sUSDD, an interest-bearing version of the token. Users can stake their USDD to earn stable, competitive Annual Percentage Yields (APYs). The interest is generated sustainably from protocol revenue and the staking of the underlying reserve assets.
DeFi Trading and Liquidity: USDD serves as a foundational base pair on major decentralized exchanges (like S

What Exactly is USDD?
At its core, USDD is a decentralized stablecoin pegged 1:1 to the US Dollar. Unlike centralized stablecoins like USDT (Tether) or USDC (Circle)—which are managed by corporate entities and backed by traditional bank deposits—USDD lives entirely on the blockchain.
Over-Collateralization: To ensure the price stays at exactly $1.00, USDD maintains a collateralization ratio well above 100% (often exceeding 200%). If you hold 1 USDD, there is mathematically more than $1 worth of Bitcoin, TRX, and other stablecoins locked in a smart contract backing it up.
The TRON DAO Reserve (

The USDD 2.0 Era Recently, the protocol underwent a massive structural upgrade to USDD 2.0. This migration fully decentralized the system, putting control entirely in the hands of the community through on-chain voting and smart contracts. It also introduced dynamic collateral ratios, enhanced liquidation security to protect the dollar peg, and expanded deeply into multi-chain ecosystems like Ethereum and the BNB Chain

The Pivot to Over-Collateralization
Just weeks after USDD launched, the crypto market witnessed the historic collapse of Terra's UST—a massive algorithmic stablecoin that lost its peg and wiped out billions of dollars. Recognizing the inherent risks of pure algorithmic models, the TRON DAO Reserve quickly pivoted. In June 2022, USDD was upgraded to an over-collateralized decentralized stablecoin. This meant that instead of relying purely on algorithms, every USDD minted was suddenly backed by a basket of high-value crypto assets (like Bitcoin, TRX, and USDT) worth significantly more than the

The History and Evolution of USDD
USDD was introduced in May 2022 by Justin Sun and the TRON DAO. Initially, it was launched as an algorithmic stablecoin. At the time, algorithmic stablecoins (which rely on complex mint-and-burn mechanics rather than hard assets to maintain their dollar peg) were highly popular in the decentralized finance (DeFi) space.