Why can the TRON stablecoin USDD maintain stable growth and TVL?
Recently, someone asked me, principal, why USDD can be so hard, maintain a high annualized while the price is stable and steady growth, I thought about it, looked at USDD's TVL, it is indeed very stable, TVL has always remained at about 400 million, then there can only be another popular science article.
Why is the price of USDD so stable?
1/ PSM exchange module, at present, this is the greatest Mint and launch mechanism of stablecoins, which can always be exchanged 1:1 without wear and tear, when the USDD price is lower than 1USDT, someone will buy arbitrage, and when the USDD price is higher than 1USDT, someone will sell arbitrage, ensuring that the USDD price will always = 1USDT.
2/ Over-collateralized minting mechanism, anyone minting USDD through TRX, sTRX, USDT must use excess value minting to ensure price stability and avoid liquidation risks.
What is the reason for the steady growth of USDD?
1/ TRONDAO maintains a high APY subsidy, and there is no risk of mining and selling, but it is directly subsidized by the TRONDAO Foundation with income, which has no impact on USDD itself.
2/ The PSM and overcollateralization mechanisms ensure liquidity for minting and exiting, reducing liquidation risk, while the auction mechanism avoids serial liquidations.
3/ TRON has built a diversified stablecoin system composed of USDT, USDC, TUSD, USDJ, USDD, and USD1, among which the issuance of USDT has surpassed the Ethereum ecosystem. This strong ecological foundation provides USDD with a user base and market trust.
4/ USDD 2.0 has been optimized in terms of security, decentralization, and stability, introducing real-time collateral adjustment and predictive analytics, and enhancing its ability to resist market risks. It provides a guarantee for the stability of USDD in extreme market conditions.
So students, don't worry about USDD unanchoring anymore, this time you want Brother Sun's earnings, Brother Sun really doesn't want your principal, if you don't believe it, Aite will give him a look and let him say a few words.
@justinsuntron @usddio #TRONEcoStar
Show original


31
40.82K
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.