Recently, renowned industry research firm Messari released its first-anniversary report on USDD 2.0, titled "A Year After the USDD 2.0 Upgrade: Yields, Peg Stability, and Multi-Chain Execution." Simultaneously, TechFlow published "After $1 Billion TVL, Has the USDD 'Interest-Generating USDT' Narrative Entered the Stablecoin Main Table?" Both reports provide detailed analyses of USDD's growth over the past year from different perspectives, jointly affirming its strong performance and future potential driven by its interest-generating strategy.
The report by Messari points out that in the first year of the USDD upgrade, the core product strategy was yield-driven, emphasizing savings returns as the main value proposition through USDD Earn and sUSDD, offering interest rates higher than typical stablecoin market yields. sUSDD, as the primary savings instrument, accumulates returns through a continuously rising redemption rate, integrating incentives into a single composable product, with Ethereum TVL exceeding $310 million.
Furthermore, its issuance design balances yield requirements with risk control. On TRON, Vault-based minting introduces interest rate-sensitive supply, while on Ethereum and BNB Chain, PSM prioritizes parity redemption. Unlike most stablecoins, USDD relies on native protocol mechanisms for mandatory pegging, with minting, redemption, and liquidation rules playing a crucial role. USDD has successfully employed different dominant issuance mechanisms across environments to maintain its pegged stability.
The report emphasizes the trade-offs USDD has made. In its early stages, it pursued high yields to drive adoption, while managing risk through collateral buffers, interest rate controls, and transparency. Later, it focused on stable and transparent yield distribution. Over the past year, USDD has adjusted stability fees and incentives to allow attractive interest rate minting, treating stability fees as the primary supply cost, while savings incentives have shaped holding demand. This mechanism has enabled it to transition from subsidy-dependent to collateral-supported, maintaining a collateral ratio above an average of 112%.
TechFlow's article focuses on the milestone event of USDD's TVL surpassing $1 billion on January 14th, entering the core player table. The article argues that TRON is a major battleground for global stablecoins. USDD, initially deployed on TRON, was upgraded to a decentralized overcollateralized stablecoin. Through open minting, improved stability via the PSM module, and leveraging the mature stablecoin application ecosystem on the TRON network, it has experienced rapid expansion.
In terms of revenue generation and distribution, USDD's Smart Allocator mechanism has generated over $9 million in cumulative revenue, achieving a transformation from subsidy dependence to self-sustaining growth. Its performance in terms of data is quite impressive, with a TVL of $1.39 billion, a supply of 1.13 billion coins, and 462,000 holding addresses. Not only does it rank among the top ten stablecoin projects in terms of issuance volume, but it also boasts a significant advantage in user diversity.
TechFlow believes that USDD's growth strategy includes subsidy launches, multi-chain deployment, the launch of sUSDD, and ecosystem cooperation. Positioned as an "interest-bearing version of USDT," it meets user needs during market volatility through staking, one-click yield collection, automatic value appreciation, and DeFi integration. Looking ahead, USDD, focusing on enriching yield strategies, ecosystem integration, and community building, is expected to grow from 1 billion to 10 billion USD.
Reports and analyses unanimously agree that USDD has demonstrated resilience amidst market volatility, with its multi-chain strategy and sustainable yield model being key drivers. Messari emphasizes operational evolution and risk management, while TechFlow TechFlow its user base and ecosystem potential.
USDD officials stated that the past year has been dedicated to strengthening its foundation. In 2026, USDD's core objective is to achieve widespread real-world application and scale up sustainable returns.
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