USDD (USDD)
USDD (decentralized USD) is a stablecoin and digital asset launched by TRON DAO on May 5, 2022. It operates on BNB Chain, Ethereum, and TRON.
History
Open letter
TRON's founder, H.E. Justin Sun, announced the launch of USDD in an open letter on Twitter on April 21, 2022. He outlined the progression of stablecoins into Era 3.0, which emphasizes complete decentralization and eliminates reliance on centralized institutions for price stability. Era 1.0 marked the early days with stablecoins like USDT on Bitcoin's network, which faced challenges such as slow transfers and higher transaction fees due to centralized management. Era 2.0 introduced the TRON-based USDT 2.0 era, offering faster transactions and lower fees while still maintaining centralized reserves. Era 3.0 focuses on a decentralized algorithmic stablecoin that employs on-chain algorithms to manage volatility.
| Ticker | USDD |
| Category | Stablecoins |
| Website | https://usdd.io/ |
| @usddio | |
| Telegram | usddio |
| Contract Addresses | |
|---|---|
| tron | TP...Dn Copied! |
| near-protocol | 0c...arCopied! |
| bittorrent | 0x17...d1Copied! |
| arbitrum-one | 0x68...3fCopied! |
| avalanche | 0xb5...c2Copied! |
| ethereum | 0x0c...c6Copied! |
| binance-smart-chain | 0xd1...9cCopied! |
Launch
USDD was launched by TRON DAO with an initial supply of 100 million on May 5, 2022. It became available on Ethereum and BNB Chain through BitTorrent's (BTCC) cross-chain protocol. The rollout of USDD is structured in four phases: Space, International Space Station, Moon, and Mars, culminating in the launch of the USDD Mainnet. USDD is an algorithmic stablecoin pegged to the US Dollar at a 1:1 ratio.
Technology
Over-collateralization
USDD is backed by $580 million in TRX (TRON's native crypto), $235 million in BTC, and $442 million in USDT, ensuring over 200% collateralization of its circulating value. This strategy aims to maintain the USDD's peg to the USD.
Mint and burn mechanism
The USDD employs a mint and burn mechanism to maintain its peg. When USDD's value falls below 1 USD, users can exchange 1 USDD for 1 USD worth of TRX. Conversely, if USDD's value exceeds 1 USD, users can exchange 1 USD of TRX for 1 USDD.
Peg Stability Module (PSM)
USDD offers a Peg Stability Module (PSM), an open-source tool for exchanging USDD with other stablecoins like USDT or USDC at a fixed 1:1 rate without price slippage.
Super representatives
The TRON network's Super Representatives, a group of 27 TRX token holders, help maintain USDD's price stability. They mitigate volatility effects on the stablecoin, and their selection involves a community voting process among TRX holders.