What Is Usdd.io (USDD)? Complete Guide & Review About USDD

What Is Usdd.io (USDD)?

Usdd.io is a cryptocurrency issued by the TRON DAO Reserve with a stable price and diverse use cases. It will have a built-in incentive mechanism and a responsive monetary policy, which will allow USDD to self-stabilize against any price fluctuations, and help consolidate the value of USDD as a true settlement currency. Also, a decentralized currency protocol with a stable price will expand use cases for cryptocurrency, making it truly accessible with far-reaching implications for the blockchain space and the real economy.

Important Points Table Of Usdd.io

How to Buy the Continental & Trade On Exchange?

Over-Collateralized Decentralized Stable coin

Decentralized

The USDD protocol aims to provide the blockchain industry with the most stable, decentralized, tamper-proof, and freeze-free stablecoin system, a perpetual system independent from any centralized entity.

Over-Collateralized

USDD is secured by the over-collateralization of multiple mainstream digital assets (e.g. TRX, BTC, and USDT). The total value of collateralized assets is significantly higher than that of USDD in circulation with the collateral ratio set at 130%, far exceeding the 120% required for DAI.

Chain-Agnostic

USDD circulates on TRON, Ethereum, BSC, and other networks via the cross-chain protocol BitTorrent Chain. Similar to TRC20-USDT, it caters to users’ needs by offering them a fast and affordable experience on TRON.

Peg Stability Module

Peg Stability Module (PSM) is a swap tool launched by the TRON DAO Reserve, aiming to maintain the stability of USDD. Users can swap between USDD and USDT at a 1:1 ratio with no slippage.

Peg Stability Module

Peg Stability Module (PSM) is a swap tool launched by the TRON DAO Reserve, aiming to maintain the stability of USDD. Users can swap between USDD and USDT at a 1:1 ratio with no slippage.

Measuring Stability

Since the price of USDD in the secondary market is exogenous to the TRON network on which the USDD protocol runs, the system must rely on a decentralized price oracle to estimate an accurate price. The mechanism for the price oracle is defined as follows:
● Super Representatives provide the USDD price oracle on the TRON network, who need to submit a vote for what they believe to be the current exchange rate in USD.
● The votes are tallied every n blocks by taking the weighted medians as the true rates.
● Rewards will be given to those who voted within one standard deviation of the elected median to incentivize Super Representatives to vote for the true rates.

Achieving Price Stability

The USDD market follows the simple law of supply and demand for a pegged currency. Once the system detects the deviation of the USDD price from its peg, it takes countermeasures to normalize the price.

Contracting the money supply will result in a higher relative price level. When the USDD price level is below the target, a reduction in the USDD supply will bring the price level back to normal.

Expanding the money supply will result in a lower relative price level. When the USDD price level is above the target, an appropriate increase in the USDD supply will bring the price level back to normal.

Conclusion

The Usdd.io protocol is a decentralized stablecoin protocol secured by the over-collateralization of multiple mainstream digital assets, which complements existing fiat currencies and cryptocurrencies as means of transaction and store of value. They introduced the issuance process and management mechanism of the protocol in the USDD 1.0:

Space phase. At this stage, the TRON DAO Reserve and prominent blockchain institutions in the industry will conduct the issuance and management of USDD, which are completely based on the TRON decentralized network and adopt multi-signature methods to ensure transparency and security of issuance and management. In the USDD 4.0: Mars phase, the TRON DAO Reserve will transfer the USDD issuance and management authority to the TRON USDD decentralized network.