What is USDD?
USDD stands out as a beacon of stability in a world dominated by volatile digital assets, offering users the best of both worlds. But how does it achieve this delicate balance?
USDD is a stablecoin mainly used to pair with other cryptocurrencies such as Bitcoin and Ethereum.
Its nonvolatile nature helps you store funds safely, and the TRON DOA Reserve governs it. Moreover, the last “D” in the USDD stands for Decentralized. It was launched to duplicate the use of the stablecoin USDT. USDT and USDD are two different stablecoins used for the same purposes. They are both algorithmic stablecoins that work by maintaining price stability through mathematical algorithms.
The Origin and Development of USDD
Justin Sun founded USDD and launched it on the BNB chain in 2022. He graduated from the University of Pennsylvania after completing his MA in political economy. Before that, he had completed his BA in history from Peking University.
USDD was not his first project. Previously, Justin launched the TRON Network in 2017, which provides peer-to-peer content.
USDD in the Context of Digital Economy
In the context of the digital economy, USDD (Decentralized USD) serves as an algorithmic stablecoin, and here’s where it’s used:
- Digital Transactions
- Smart Contracts on TRON
- Mining and Participatory Opportunities
- Incentivizing Content Creators (Direct Payments)
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Blockchain Technology Behind USDD
Here is how technology is used in USDD to make it stable and secure.
The TRON Network and USDD
USDD operates on multiple blockchains, including the TRON Network, NEAR, Ethereum, and Binance Smart Chain.
This multi-chain presence allows users to access and transact with USDD across blockchain ecosystems.
TRON leverages the capabilities of blockchain technology and peer-to-peer (P2P) networks to cut out intermediaries, enabling content creators to sell their products directly to consumers. This eliminates the need for intermediaries typically taking a share of the profits.
How Blockchain Supports USDD Stability
USDD is backed by a combination of crypto assets, including TRX (TRON’s native cryptocurrency), BTC (Bitcoin), and USDC (USD Coin). These assets serve as collateral to ensure the stability of USDD.
Security Features of USDD’s Blockchain Technology
Here are some of the security features.
- Blockchain Immutability: One of the inherent strengths of blockchain technology is its immutability. Once data is recorded on the blockchain, it is nearly impossible to alter or erase.
- Smart Contracts: Smart contracts are self-executing and tamper-proof, adding an additional layer of security to the stablecoin’s operations.
- Consensus Mechanisms: Blockchain networks use consensus mechanisms like Proof of Stake (PoS) and Delegated Proof of Stake (DPoS) to secure transactions.
The Role of Stablecoins in Cryptocurrency
Here’s a detailed overview of stablecoins in cryptocurrency.
What Are Stablecoins?
The main reason why cryptocurrencies were created was to avoid the involvement of banks while carrying out a transaction. But, storing your funds in cryptocurrencies such as Bitcoin and Ethereum is hazardous as they are pretty volatile.
As people want to use a currency in their everyday life that is more stable, this is where the concept of stablecoins comes into cryptocurrency.
Stablecoins are a form of cryptocurrency whose prices are based on or assumed by different asset classes. This asset class can be anything like gold or fiat currencies used in transactions. USSD is a stablecoin that the US Dollar backs, which helps it maintain stability in its price.
However, it does not mean that the stablecoin price does not change. It increases smoothly over a long period, and no rapid price changes will be witnessed, as in the case of cryptocurrencies.
Different Types of Stablecoins
The US Dollar and many other asset classes can be used to back a stablecoin, and some of them are mentioned below.
- Fiat
This is a type of stablecoin whose value is based on the fiat currency, which can be different from USD. Although the USD is one of the most common assets used to back a stablecoin, any stable third-world currency can also be used. For example, BiLira uses Turkish lira to back the stablecoin. - Cryptocurrencies
Many cryptocurrencies have their native token, such as Ether, which is the native token of the Ethereum Network. Such tokens could also be used as an asset class to back a stablecoin. - Precious Metals
The purest form of assets, such as gold or silver, can also be used as an asset class. Other than gold, many other commodities, such as silver, platinum, and copper, can also be used.
Stablecoins vs. Other Cryptocurrencies
Stablecoins are primarily used for transferring value and as a stable unit of account within the cryptocurrency ecosystem.
Other cryptocurrencies serve various purposes. Bitcoin, for example, is often considered “digital gold” and a store of value. Ethereum is known for its smart contract capabilities, enabling decentralized applications (DApps) and the creation of new tokens.
Stablecoins aim to minimize price volatility, and their values are usually tightly controlled to stay close to their peg. In contrast, most cryptocurrencies can experience significant price swings, creating opportunities and risks for investors and users.
Moreover, stablecoins tend to have high liquidity and are widely used in trading and financial markets.
The Economic Model of USDD
Here’s how the USDD model works.
How USDD Maintains Its Peg to the Dollar
USDD employs a mint-and-burn mechanism to maintain its 1:1 peg with the US dollar.
When the price of USDD falls below $1, users can exchange 1 USDD for 1 USD worth of TRX. Conversely, when the price exceeds $1, users can exchange USDD for TRX. This mechanism helps to regulate the supply of USDD in the market and ensures that it remains closely tied to the value of the USD.
Financial Policies Affecting USDD Stability
- Monetary Policies
- Risk Management Policies
- Financial Policies
Who Governs USDD?
TRON DAO governs USDD, and let’s dive more into it.
The TRON DAO and USDD Governance
The TRON DAO Reserve operates as a decentralized autonomous organization, which means it operates without centralized control. The TRON Network created it to oversee stablecoins, including USDD.
Community Participation in USDD Governance
The governance of USDD involves a democratic element where the community can participate in decision-making processes. The governance structure includes 27 Super Representatives who hold TRX tokens. These representatives play a role in maintaining stability, and they can apply for their positions through a voting process conducted by TRX holders.
The Function of USDD in DeFi
Here’s how USDD is used in the DeFi Ecosystem.
Lending, Borrowing, and Yield Farming with USDD
USDD’s stability, being pegged to the US dollar, makes it an attractive choice for lending and borrowing within the DeFi space.
Users can lend USDD to earn interest or borrow it as a stable and reliable collateral asset for loans.
Yield farming involves providing liquidity to decentralized finance protocols in exchange for rewards.
Users can also use USDD to contribute liquidity to decentralized exchanges and pools.
USDD as a DeFi Collateral Asset
USDD serves as a secure collateral asset in decentralized finance platforms. Users can use USDD as collateral to obtain loans or participate in other financial activities without the risk of significant value fluctuations associated with more volatile cryptocurrencies.
USDD Compared to Other Stablecoins
Let’s compare USDD with other stablecoins.
USDD and Tether (USDT)
USDD and Tether can be used for everyday transactions and are not operated on a single blockchain network, which provides its users flexibility and interoperability.
USDD operates on the TRON Network and the Binance Smart Chain, while Tether operates on Ethereum and on the Omni Layer Protocol.
USDD and USD Coin (USDC)
Both of these stablecoins operate on blockchain technology, which reduces the transaction completion time and enhances the transparency of transactions.
In order to maintain a 1:1 peg with the Dollar, USDD is backed by a number of crypto assets, which involve BTC, TRX, and even USDC. On the other hand, USDC is backed by the fully reserved currency of the US Dollar available in designated banks.
Moreover, USDC operates on the Ethereum ecosystem and is used by many decentralized applications and protocols.
How to Acquire USDD on Huobi (HTX)
Here are some steps you must follow to buy USDD from Huobi.
Registration
To create an account, click on the link below, which will take you to Huobi’s registration page using a special Coin-Labs referral code. Provide an active email address and create a username and password.
Verification
Although you registered as a user, you must complete verification before trading. This involves the KYC (Know Your Customer) process, in which you must provide information regarding your national identity card or passport. You will have to photograph the front and back side photo of your proof of identity. A live photo will also be required to ensure that Huobi is dealing with the right person.
Depositing Funds
Now you need to deposit funds. Huobi offers several ways of depositing funds involving bank transfers, Credit/Debit Cards, and P2P transactions. All of these options are quite feasible, so don’t worry. Remember that depositing funds through Credit/Debit cards and bank transfers will not be allowed in every country. However, P2P is an option that can be used in any country. Finally, your funds are in your account, and you are ready to buy as much USDD as you want.
Storage Solutions: Wallets Supporting USDD
You can trade with USDD in many wallets and platforms. These include platforms such as TronLink, MetaMask, Binance, and Coinbase.
You cannot only trade but also store USDD on these platforms.
Understanding the Risks of USDD Investment
Here are some of the risks involved with USDD investment.
- Smart Contract Vulnerabilities
- Collateral Risk
- Liquidity Risks
- Regulatory Risks
USDD’s Roadmap and Future Features
USDD aims to improve its features and prepare well for the future. It plans to introduce many innovative features which still need to be disclosed. Moreover, USDD is keen on working with its governance model and blockchain integrations to make the platform more secure.
Conclusion
With its unique features and high security, USDD has become the town’s talk and the user’s favorite stablecoin to trade. But you must remember that it has some drawbacks, including liquidity, collateral, and regulatory risks.
We Coin-Labs.com provides only objective information about USDD.
Therefore, we are not responsible for the investment decision in USDD and the resulting loss.
USDD Basics
Here are some factors that investors should consider before investing in USDD.
| Cryptocurrency Features | USDD (USDD) |
|---|---|
| Publisher or Developers | Justin Sun |
| Headquarters (Registration Number) | |
| Symbol | USDD |
| Platform | multiple blockchains (TRON Network, NEAR, Ethereum, Binance Smart Chain) |
| Published Date (CMC Registration) | 2024-11-01 |
| Max Supply | No limit |
Reliability Score of USDD in 2024
These are indexes mesuring the investment reliability of USDD conducted by Coin-Labs.com.
| Investment Reliability Rating Items | Scores and Current Status |
|---|---|
| Company Activation Rate | / 10.0 CAR |
| Communication Rate | / 10.0 CR |
| Technology Transparency Rate | / 10.0 TTR |
| Development Participation Rate | / 10.0 DPR |
| Listing Status on the World's Top 10 Exchanges | Listed on 4 Exchanges |
| Number of Available Pairs Worldwide | 174 Pairs |
| Market Cap of the Cryptocurrency | 721,141,963 USD (Rank #88) |
The table above shows the result of investment suitability evaluation for USDD.
Check out how we evaluate cryptocurrencies on the crypto rating description page.
USDD Price
Here are the price and recent trading volume of USDD. (Data of 2024-11-02 00:35:00)
| Price Items | Price and Trading Volume of USDD |
|---|---|
| USDD Price | 0.999 USD |
| Price Change 24h | 0.15% |
| Price Change 7d | 0.02% |
| Trading Volume 24h | 2,270,256 USD |
| Trading Volume Change 24h | 5.25% |
Cryptocurrency Metadata
You can check the development status and social media information of USDD through the links in the table below.
| Metadata Source | URL |
|---|---|
| 🌎 Official Website | https://usdd.io/ |
| 📖 White Paper | https://usdd.network/USDD-en.pdf |
| 🛰️ Source Code (GitHub) | https://tronscan.org/#/contract/TPYmHEhy5n8TCEfYGqW2rPxsghSfzghPDn/code |
| https://twitter.com/usddio | |
| 🎺 Message Board |
Where to Buy USDD
Here are the top ten world crypto exchanges where traders can buy USDD in 2024.
| Top10 Exchanges | Listed Status | Page URL |
|---|---|---|
| Binance | Not listed | |
| Coinbase | Not listed | |
| Kraken | Not listed | |
| KuCoin | Listed | https://www.kucoin.com/trade/USDD-USDT |
| Bitfinex | Not listed | |
| OKX | Not listed | |
| Huobi | Listed | https://www.htx.com/en-us/trade/usdd_usdt?type=spot |
| Bitstamp | Not listed | |
| Bybit | Listed | https://www.bybit.com/en/trade/spot/USDD/USDT |
| Gate.io | Listed | https://www.gate.io/trade/USDD_USDT |
Frequently Asked Questions
What is the current price of USDD?
USDD price today is 0.999 USD. Furthermore, the price of USDD has fluctuated by 0.15% from 24 hours ago, and by 0.02% from a week ago.
Where is USDD listed?
Currently, it is listed on a total of 4 among the world top 10 exchanges.
What is the market cap of USDD now?
Currently, USDD has a market cap of 721,141,963 USD, which is ranking 88 among cryptocurrencies worldwide.
How much is the trade volume of USDD?
Currently, 754,405,626 USDD coins are circulating through 174 market pairs. As a result, in the last 24 hours, 2,270,256 USD of USDD coins were traded in the market.
