USDD is essentially a "wrapped" interest-bearing version of USDT. I only recently came up with this idea myself. Why do I use the word "wrapped"? Previously, we mostly discussed wrapping native tokens on public chains, such as WTRX wrapping TRX. This is because native tokens generally don't conform to network token standards, and smart contracts can't recognize them. So why do I say it's a "wrapped" interest-bearing version of USDT? 1/ USDD and USDT can be exchanged 1:1 with PSM at zero loss. In a sense, it has the same redemption standard as the wrapped token. 2/ USDT doesn't have a native interest-bearing protocol, while USDD has a native protocol with a maximum APY of 20%, currently at 12% on Ethereum and BNB Chain. Many people ask about security. There's no need to worry about that. Stablecoin problems are usually due to protocol attacks, losses in the underlying strategy, or redemption difficulties. 1/ USDD's protocol has undergone several audits, ensuring its security. 2/ USDD's underlying strategy utilizes the most liquid and secure demand deposits among AAVE, Spark, and JustLend, allowing for immediate withdrawal. 3/ The vast majority of USDD's minting is done through the PSM module, so even in extreme market conditions, there will be no systemic risk due to a drop in collateral prices. Redemption is orderly and guaranteed at a 1:1 ratio with zero losses. PS: When other stablecoins de-peg, it's a matter of running away quickly; if USDD de-pegs, it's a matter of buying quickly because PSM creates arbitrage opportunities in the market. @justinsuntron #TronEcoStar
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