USDD is one of the hardest dollar stablecoins in the cryptocurrency world, simply put, it is the TRON version of DAI.
Launched in 2022 with the personal endorsement of TRON founder Justin Sun, it claims to be a decentralized over-collateralized stablecoin, pegged to 1 dollar, but it is completely different from centralized stablecoins like USDT and USDC.
The core mechanism of USDD is very similar to DAI: you collateralize assets like TRX, BTC, ETH, etc., to borrow USDD, with a collateralization ratio generally required to be above 150%. When the price deviates from 1 dollar, the system will automatically arbitrage: if the price falls below 1 dollar, it encourages the destruction of USDD in exchange for collateral, and if the price rises above 1 dollar, it encourages borrowing more USDD.
The entire process runs on smart contracts, requiring no centralized reserves. But USDD has a powerful tool — the Super Representatives (SR) of the TRON ecosystem will use part of the reserves for algorithmic stability: when the price drops below 1 dollar, the SR will buy back USDD with their own TRX pool to destroy it, forcibly bringing it back to 1 dollar.
Therefore, many people say that USDD is a semi-decentralized stablecoin, and Justin Sun's personal credit plays a significant role in it. In May 2022, when Terra collapsed, USDD also temporarily decoupled to 0.7 dollars, and the community was almost panicked. But Justin Sun directly spent hundreds of millions of dollars to buy back USDD, forcefully bringing it back.
Since then, USDD has become the official stablecoin of the TRON ecosystem, and almost all DeFi, GameFi, and NFT transactions on TRON use it. By 2025, the circulation of USDD has already exceeded 5 billion dollars, making it the most commonly used stablecoin on the TRON chain.
$USDD itself is not mined, nor does it pay dividends; it is purely a stablecoin, but holding it is equivalent to indirectly enjoying the growth of the TRON ecosystem. USDD may not be attractive, but it is indeed very stable, backed by Justin Sun and the TRON ecosystem, one of the hardest TRON coins in the cryptocurrency world.
