USDD 2.0 continues to stand out in DeFi because its CDP framework is designed not just for borrowing, but for capital efficiency. The TRX and sTRX vault system allows users to unlock liquidity while still keeping their assets productive, creating a structure where yield stacks instead of replacing itself.

At its core, the CDP model allows users to deposit collateral such as TRX or sTRX into on-chain vaults and mint USDD against those assets. With collateral ratios starting around 120%, the system maintains a healthy safety buffer while still allowing efficient capital usage. Ongoing incentive phases further reduce costs, with stability fees temporarily lowered and bonus USDD rewards available for participants minting through supported vaults.

The real innovation appears when sTRX enters the picture. Since sTRX already earns staking rewards from the TRON ecosystem, users depositing it as collateral continue receiving those staking returns. Meanwhile, the USDD minted from that collateral can then be converted into sUSDD, where additional protocol-generated yield compounds over time.

In practical terms, users maintain staking income on their original collateral while simultaneously earning yield on minted USDD, all without losing liquidity. This layered approach creates a powerful efficiency loop that traditional CDP models do not offer.

System stability remains protected through over-collateralization and disciplined liquidation mechanisms, keeping protocol health intact even during market stress. Strong TVL growth and increasing adoption further signal that this framework is moving beyond experimentation toward real-world usage.

For users looking to put capital to work without abandoning safety, this double-yield structure offers a compelling path forward. The opportunity remains open for those ready to mint and deploy their USDD within the ecosystem.

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