Justin Sun’s USDD stablecoin is now officially expanding to the Ethereum network. This move aims to make the Tron-based algorithmic stablecoin a major player in the wider stablecoin market. The team plans special campaigns to boost its use within the Ethereum world.
The USDD, created by the Tron DAO Reserve, will run natively on Ethereum. This decision marks a big step. It helps USDD become a multi-chain choice for stablecoins. The team shared this news on Medium. They called USDD’s arrival on Ethereum a “new era.” It connects the token with the largest smart contract system in the industry. Justin Sun himself celebrated on X, claiming the asset could offer up to 12% annual returns.
New Perks and Savings Options
The USDD team confirmed that early users will get an exclusive airdrop. This special giveaway starts the Tuesday after the announcement. They are also launching sUSDD. This version lets people earn interest through a decentralized and clear savings system. The plan is to compete with top stablecoins. USDD will offer not just dollar value, but also ways to earn money passively. The team says these features will be ready for Ethereum users right away.
Keeping Things Steady and Safe
To keep USDD stable on its new network, a Peg Stability Module is being added. This feature lets users create and swap USDD for USDT and USDC. They can do this at no cost or a very low cost. This makes sure there’s enough liquidity and a steady value from day one.
Before this launch, the cybersecurity firm CertiK completed a full audit. This was done to build trust with the community. The team stated this step shows their commitment to being open and decentralized.
Past Issues and Doubts
USDD first launched in May 2022. This happened shortly after Terra’s UST stablecoin collapsed. Like UST, USDD uses smart contracts, extra collateral, and market rules to stay pegged to the U.S. dollar. This makes it an algorithmic asset.
But USDD has faced criticism. In August 2024, the Tron DAO Reserve pulled almost $750 million in Bitcoin that backed the token. Now, TRX, Tron’s own coin, mainly supports it. The DAO had promised to gather $10 billion in reserves from industry players. However, many have questioned how much it is actually backed now.
An independent rating firm named Bluechip gave USDD an “F” for stability. Their estimates suggest the real backing is only about 53%. This figure includes other cryptocurrencies and pegged assets like USDT, USDC, and TUSD.
Future on Ethereum
Market data shows about $460 million in USDD is currently circulating. This is less than the $750 million recorded a year ago. Even with this drop, the team believes its move to Ethereum will increase adoption. They also expect it to boost the token’s usefulness in decentralized finance.
“Ethereum’s system has the biggest community of developers, protocols, and liquidity in DeFi,” the team noted in their statement. “By putting USDD directly onto this network, we reach more people. It strengthens our promise for openness, decentralization, and long-term yield.”