Justin Sun, Global Advisor of HTX and founder of TRON, joined the leading crypto exchange HTX for an X Spaces session titled “Explore USDD with Justin Sun”. During the session, Sun provided an in-depth explanation of USDD, the latest version of the USDD stablecoin, and answered audience questions. The session garnered significant interest from the crypto community, with over 12,000 concurrent listeners at its peak.
USDD 2.0: Pegged 1:1 with USD, Backed by Multiple Stability Mechanisms
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Launched on January 25, USDD 2.0 is an upgraded decentralized stablecoin on the TRON network.
Sun emphasized that despite the dominance of USDT and USDC, the market still lacks a truly trustless and fully decentralized stablecoin with no censorship and freezing of assets, which is why he championed USDD.
To maintain its 1:1 peg to USD, USDD 2.0 utilizes stability mechanisms, including overcollateralization, a liquidation and auction model, risk management and real-time monitoring, a Peg Stability Module (PSM), and decentralized governance.
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The PSM is a critical component. It allows users to quickly swap USDD for other stablecoins at a 1:1 ratio with nearly zero gas fees. This significantly reduces arbitrage risks and promotes price stability, even during market fluctuations.
USDD’s overcollateralization model further enhances its stability and minimizes risks. To mint USDD, users must provide collateral assets like TRX or USDT. Due to TRX’s strong market liquidity and ecosystem support, and USDT’s established stability, the value of the collateral consistently exceeds that of the minted USDD.
As of 8:30 AM UTC on February 6, the total collateral backing USDD was nearly $130 million, representing an overcollateralization ratio of 1.23x.
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Sun summarized, “If you are unsure about USDD, just think of it as a mirrored proxy of USDT.”
20% APY on USDD Staking—Backed by Decentralization
Sun emphasized that USDD can be swapped 1:1 for USDT at any time, with no limit, making it as easy to use as USDT on TRON—but with the potential for higher returns.
Currently, Tier T1 of USDD staking offers a 20% APY, fully subsidized by TRON DAO. HTX Earn also offers a limited-time 20% APY bonus for its USDD Flexible product. Since the bonus was introduced, subscribed assets for the product increased nearly tenfold. Users can stake USDD on HTX or JustLend DAO and enjoy a guaranteed 20% yield. Users can also borrow USDD using their USDT holdings and then stake the borrowed USDD for additional potential returns.
Addressing community concerns about the security and sustainability of the 20% yield, Sun stated, “Consider the value proposition of a decentralized stablecoin on TRON. There’s $60 billion worth of USDT on TRON. If you believe in a truly decentralized alternative, you understand USDD’s potential value.”
Regarding use cases, Sun explained that USDD is designed to support the functionalities that USDT cannot fully provide on the TRON network. He also announced upcoming partnerships with centralized exchanges. HTX and Poloniex may soon support USDD used as margin in futures trading, and integrates USDD into one-click USDD swaps, and USDD-powered SmartEarn. Discussions are also underway with other crypto institutions regarding further USDD integration.
HTX’s Growth: $HTX Set to Be Listed on Major Regulated Exchange
Sun also announced that $HTX will soon be listed on a major regulated exchange. Efforts are underway to further enhance its utility, giving it a competitive advantage over other centralized exchanges.
He reaffirmed that HTX’s listing strategy focuses on identifying promising projects, with all new token listings based on independent research, and also speed. HTX’s agility has allowed it to stay ahead of the curve in the crypto market over the past two years. Looking ahead, HTX will focus on the AI sector, with potential AI-driven projects in development.
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Source – PR Newswire
