USDD
Crypto Overview
Overview
USDD is a decentralized algorithmic stablecoin launched on the TRON blockchain in May 2022. It aims to maintain a 1:1 peg with the US dollar through a combination of algorithmic mechanisms and over-collateralization.
Intended Utility
The primary purpose of USDD is to serve as a stable medium of exchange and store of value in the TRON ecosystem. It is designed to maintain price stability through a mint-and-burn mechanism with TRX (TRON's native token) and other cryptocurrency collateral.
Actual Utility
USDD is actively used within the TRON ecosystem for trading, payments, and DeFi applications. The token maintains significant liquidity across various decentralized exchanges and has achieved notable adoption within its intended use case. The TRON DAO Reserve maintains transparency by publishing real-time collateralization rates and reserve assets.
Token Distribution and Governance
USDD is managed by the TRON DAO Reserve, which oversees the collateral ratio and stability mechanisms. The protocol's collateralization rate typically exceeds 200%, providing a significant safety margin for maintaining the dollar peg.
Technology and Revenue Model
USDD employs a hybrid model combining algorithmic stability mechanisms with over-collateralization. The protocol generates revenue through trading fees and maintains stability through market operations rather than interest-bearing mechanisms.
Crypto Impact
To assign a comfort level investing in USDD from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to USDD.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.