Why can the TRON stablecoin USDD maintain stable growth and TVL?

Recently, someone asked me, Principal, why is USDD so solid, maintaining a high annualized return while keeping its price stable and steadily growing? I thought about it and looked at USDD's TVL, which is indeed very stable, consistently remaining around 400 million. So, I guess it's time for another informative article.

Why is the price of USDD so stable?

1/ PSM exchange module, which is currently the greatest minting and launching mechanism for stablecoins. It allows for 1:1 frictionless two-way exchanges. When the price of USDD is below 1 USDT, arbitrageurs will buy, and when the price of USDD is above 1 USDT, they will sell, ensuring that the price of USDD always equals 1 USDT.

2/ Over-collateralized minting mechanism, where anyone minting USDD via TRX, sTRX, or USDT must use an excess of value for minting, ensuring price stability and avoiding liquidation risks. When positions approach liquidation, an auction model will be used to complete the liquidation, avoiding cascading liquidations and market crashes.

What are the reasons for USDD's stable growth?

1/ TRONDAO maintains high APY subsidies with no risk of mining and selling, as the TRONDAO Foundation directly subsidizes with income, having no impact on USDD itself.

2/ The PSM and over-collateralization mechanisms ensure liquidity for minting and exiting, reducing liquidation risks, while the auction mechanism avoids cascading liquidations.

3/ TRON has built a diversified stablecoin system consisting of USDT, USDC, TUSD, USDJ, USDD, and USD1, among which the issuance of USDT has surpassed that of the Ethereum ecosystem. This strong ecological foundation provides a user base and market trust for USDD.

4/ USDD 2.0 has optimized security, decentralization, and stability, introducing real-time collateral adjustments and predictive analysis, enhancing its ability to withstand market risks. This ensures the stability of USDD in extreme market conditions.

So, students, don't worry about USDD decoupling anymore. This time, if you want Brother Sun's profits, Brother Sun really doesn't want your principal. If you don't believe it, tag him and let him say a few words.

@justinsuntron @usddio #TRONEcoStar