USDD is a decentralized stablecoin launched by the TRON ecosystem, with a simple goal: to create a dollar substitute that 'does not rely on banks but is supported by on-chain assets', allowing users to use it more steadily and freely in DeFi. It was first released in 2022 by TRON DAO Reserve, positioned as an on-chain dollar with self-regulating capabilities, high transparency, and resistance to censorship.
The development of USDD has undergone an evolution from 'algorithmic stablecoin' to 'over-collateralized stablecoin'. By 2025, it officially enters the USDD 2.0 phase, adopting over-collateralization with multiple assets such as TRX, USDT, BTC, and sTRX, with collateral ratios often far exceeding the minimum requirement of 120%, sometimes even surpassing 200%. This mechanism allows it to maintain its 1 dollar peg more effectively during market fluctuations, avoiding the risk of decoupling.
USDD also relies on the high throughput and low-cost advantages of the TRON network, being widely used in scenarios such as on-chain payments, cross-chain circulation, lending, and staking. Its issuance amount once exceeded 750 million dollars, with a total collateral value exceeding 2.9 billion dollars, and a collateral ratio as high as 380%.
In simple terms, what USDD aims to do is to become a truly decentralized, transparent, censorship-resistant 'on-chain dollar' that can be used in both real-world payments and DeFi.