GuShiio.com Sun Yuchen mentioned in the live broadcast that although there are currently stable coins such as USDT and USDC in the encryption market, there is still a lack of a stable coin that truly achieves zero trust, zero censorship, completely decentralized, never freezes, and is safe and reliable. This is why he insisted on launching USDD.
On February 5, Sun Yuchen, global consultant of Huobi HTX and founder of TRON, enthusiastically launched a video through Huobi HTX Twitter Space, saying,”Can you still trust Brother Sun in this wave of USDD?” As the theme, he gave an in-depth interpretation of USDD 2.0 and answered community questions about USDD and Huobi HTX. The live broadcast event received enthusiastic responses from the encryption community, with the maximum number of simultaneous online users exceeding 12,000.
Pegged to the US dollar 1:1, multiple mechanisms make USDD “as stable as an old dog”
Official information shows that USDD 2.0 is a decentralized stablecoin project on the wavefield TRON chain and was launched on January 25 this year.
Sun Yuchen mentioned in the live broadcast that although there are currently stable coins such as USDT and USDC in the encryption market, there is still a lack of a stable coin that truly achieves zero trust, zero censorship, completely decentralized, never freezes, and is safe and reliable. This is why he insisted on launching USDD.
According to its introduction, USDD 2.0 ensures its 1:1 pegging to the US dollar through multiple mechanisms such as overcollateralization, clearing and auction, risk management and real-time monitoring, PSM (pegging stability module), and decentralized governance, which can make USDD stable. Like an old dog.
The most important thing isPSM module. PSM modules are key technology to ensure USDD is pegged 1:1 to the US dollar, allowing users to use USDD and other stablecoins in a 1:1 ratio without lossSecond-level interchange, you only need to pay a small Gas fee. This mechanism greatly reduces arbitrage risks and can also quickly adjust and stabilize prices when supply and demand are unbalanced.
In addition, users who have already minted USDD know that they need to be over-collateralized with qualified assets (TRX, USDT) to start minting. Even if this mechanism encounters market fluctuations-thanks to the stability of USDT and TRX’s high market liquidity and ecological support as a mainstream public chain token, the overall price fluctuations are relatively controllable, and the value of the collateral will always be higher than the amount of USDD minted, thereby providing sufficient stability and minimizing risks.
Official data shows that as of 16:30 on February 6, USDD’s total collateral was close to US$130 million, with 1.23 times overcollateralized.
Sun Yuchen emphasized in the live broadcast,”If you don’t understand USDD, just treat USDD as a mirror Proxy of USDT。”
APY subsidies up to 20%, fully decentralized USDD is trustworthy
During the live broadcast, Sun Yuchen analyzed that the 1:1 unlimited exchange for USDT at any time is mainly slippery, non-perceptual, and non-threshold. Using USDD on the wavefield TRON is no different from using USDT, except for the high interest rate.
How high are the interest rates? It is reported that the annualized income of the T1 phase of USDD pledge activity is 20%, and these income comes from subsidies from TRON. In addition, Huobi currently provides USDD current products with interest rate hikes within the limited time limit for making money, and the adjusted APY is also 20%. It is reported that after Huobi Earnings was launched, the existing amount of USDD current products increased nearly 10 times month-on-month. This means that you can steadily collect 20% interest by directly depositing USDD in Huobi HTX or Justlend DAO. Of course, users can also borrow USDT through USDD mortgage, exchange it for USDD and then pledge it, or directly borrow USDD to deposit and amplify the income.
It is reported that the USDD equity address TDrc3zH9wWufmQJyS7QLxBYH8GS 27drW5N marked as “LendSafeVault” has been deposited with USDD worth $1,380,822.00.
During the live broadcast, community users were particularly concerned about the security of the USDD 20% revenue subsidy. Sun Yuchen bluntly said,”How much is a completely decentralized stablecoin worth on the wavefield TRON chain? Think about it as the only decentralized option for the 60 billion USDT on the wavefield TRON, and you will understand the value of USDD.”
Talking about USDD application scenarios, Sun Yuchen revealed that USDD will first serve scenarios on the wavefield TRON chain that are difficult for USDT to support. At the same time, we will actively promote cooperation with centralized exchanges, such as Huobi HTX and Poloniex will support the use of USDD-USDT equal margin to open contract transactions, the launch of one-click exchange for USDD functions, and the USDD version of Yubibao. In addition, the cooperation between USDD and RobinHood is also being promoted.
Sun Yuchen also pointed out that it is only a matter of time before the Trump family’s encryption project World Liberty Financial (WLFI) increases its holdings of USDD.
Huobi HTX has strong development momentum, and $HTX is about to launch a compliance firm
It is worth mentioning that Sun Yuchen revealed in the live broadcast that $HTX will launch a large compliance exchange in the near future and will continue to empower $HTX in the future, which is unmatched by other centralized exchanges.
In addition, when talking about the development of Huobi HTX, Sun Yuchen said that its listing strategy attaches great importance to wealth effects, and all listing decisions are entirely based on the team’s independent investment research judgment. At the same time, special attention is paid to the efficiency of listing coins, which is a unique competitive advantage of Huobi HTX. Based on the above two points, the development of Huobi HTX has maintained a strong momentum in the past two years. In the future, Huobi HTX and himself will focus on AI tracks or launch AI projects.
