Justin Sun's decentralized stablecoin project USDD on the chain has recently seen major updates. On the 6th, it announced the launch of the 2.0 Beta version, introducing a number of new features and improvements aimed at providing users with a smoother liquidity acquisition experience and a more optimized collateral management mechanism.
According to the USDD announcement, after the official launch of USDD 2.0, users will be able to borrow USDD by pledging assets such as TRX, sTRX or USDT, while retaining their existing holdings. The platform will include key features such as Vault, Price Stability Module (PSM), , Vault Liquidations, Collateral Auctions, and Portfolio.
USDD stated that compared to the previous generation, USDD 2.0 has seen significant improvements, not only with upgraded asset liquidation and auction functions, but also enhanced platform transparency and security, as well as the introduction of a fully decentralized governance model, further improving transparency and encouraging participation.
USDD 2.0 to Offer 20% APY
Within two weeks of the USDD 2.0 Beta launch, , the founder of the chain and a member of the Global Advisory Council of , announced today that USDD 2.0 will be launched soon and will offer a 20% annual percentage yield (APY), fully subsidized by the TRON DAO:
All interest will be pre-deposited into a transparent address, for no other reason than we have a lot of money, so don't ask me questions like "where does the income come from" anymore.
According to Gecko data, the current stablecoin market is still dominated by and , with market capitalizations of $137 billion and $45 billion respectively. The current market capitalization of is $746 million, mainly traded on decentralized exchanges within the ecosystem, as well as on centralized platforms such as , and .
Community Concerns?
The high 20% yield of USDD 2.0 has drawn comparisons to the high-yield products of the past on the chain's Anchor Protocol, evoking the nightmare of the / de-peg, causing the community to be cautious about this yield rate.
analysis points out that in 2022, USDD had previously offered a 30% APY, but as the market faced challenges, this yield rate was later reduced. In August last year, the Tron DAO Reserve withdrew about 12,000 Bits of value without DAO approval, causing the stablecoin to be primarily supported by the native token , which also raised market concerns about its stability and transparency.
More importantly, USDD has de-pegged from the US dollar several times in the past two years, so the community's skepticism about the new plan is not unfounded. undoubtedly controls a large amount of capital, as he invested $30 million in at the end of November last year, but if is only using its own cash reserves to pay the yields to USDD users, the question of how it is profiting remains.
mentioned that hit a new all-time high about a month ago, but its volatility may not be sufficient to stably support the stablecoin. Potential investors still have many questions before trusting 's rebuilt USDD, regardless of whether it has enough funds to subsidize it, as it cannot permanently invest in this project.
