Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things sports. In this post I will be looking at the launch of the USDD stablecoin which is backed by Justin Sun.
Justin Sun Launches USDD Stablecoin on Ethereum
The billionaire crypto mogul Justin Sun has launched the USDD stablecoin on Ethereum with a guaranteed 12% APY rewards. This is targeting the $169 billion dominance of Tether in the stablecoin space and this launch with expand beyond the native TRON blockchain. The launch on Ethereum comes as the networks stablecoin supply has reached $165 billion and creates an opportunity for USDD to tap into the largest decentralized finance ecosystem.
The multi-chain deployment was accompanied with an airdrop campaign offering up to 12% APY rewards for Ethereum holders. The TRON DAO Reserve’s stablecoin operates through overcollateralization, maintaining a 204.5% backing ratio, primarily supported by TRX tokens after Sun removed a whopping $726 million in Bitcoin collateral last August.
A comprehensive CertiK audit proceeded the Ethereum deployment and ensures a Peg Stability Module. This allows seamless 1:1 swaps with USDT and USDC to address liquidity concerns. This development came from the lessons learned following the Terra algorithmic collapse. While USDD survived major depegging events, which included dropping to $0.983 during Terra’s May 2022 implosion and $0.97 during the FTX collapse, they are looking for ways to continue ensuring the stability of the coin.
The team behind USDD noted their plans to introduce sUSDD, an interest-bearing version of the token that will let holders earn yield within a transparent, onchain savings system. The launch on Ethereum includes a tiered rewards system ranging from 12% at low total value locked and reducing to 6% as adoption increases. Distributions occur every eight hours through the Merkl Dashboard based on daily snapshots. Eligible users need only hold the Ethereum-native token.
Beyond DeFi integration, USDD’s Ethereum presence spans 10 blockchain networks, including BSC, Avalanche, and Polygon, supported by cross-chain bridges from Stargate Finance, Symbiosis, and DeBridge. The TRON ecosystem has seen immense growth and includes SunSwap maintaining $3 billion in monthly volume and JustLend experiencing a 23% increase in borrowing transactions compared to 2024 levels. Upon launch of the stablecoin on Ethereum the USDD team remarked:
“Ethereum is home to the largest community of developers, protocols, and liquidity in DeFi. By deploying natively on Ethereum, USDD expands its utility and adoption across a broader ecosystem while maintaining its commitment to transparency, decentralization, and sustainable yield.”
There is still a long way to go before USDT's dominance can be challenged, as its daily trading volume exceeds USDD’s by a factor of 23,500. It also maintains almost near-universal exchange support across centralized and decentralized platforms. Back in July CryptoQuant data revealed that TRON surpassed Ethereum in USDT liquidity with $80.8 billion versus $73.8 billion. USDT now processes over $24.6 billion daily on TRON alone through 2.3 to 2.4 million transactions, dwarfing most competing stablecoins’ total volumes across all networks.
Binance Stablecoin Reserve (Source: Cryptoquant)
Binance continues to lead the way in commanding 67% of all exchange stablecoin reserves with $44.2 billion, including $37.1 billion in USDT and $7.1 billion in USDC. The stablecoin sector has roughly $2.5 trillion in transaction volume sector-wide and emerging competitors such as MetaMask's planned mUSD and Paxos's USHD will look to take their share of the space.
Have a great day.
Peace. CryptoGod-1.
