Justin Sun's USDD Debuts on Ethereum with 12% APY Promise

• USDD Arrives on Ethereum with Promise of High Yields
• Justin Sun-backed stablecoin will have a stability module
• Approximately $460 million in USDD is currently in circulation.

The USDD stablecoin, backed by Tron founder Justin Sun, has launched natively on Ethereum, marking an important step for the asset as it seeks to expand its presence in the stablecoin market. The token was created in May 2022 by the TRON DAO Reserve amid the UST collapse and has been operating on a limited basis on the Tron network since then.

“This is a key milestone in USDD’s journey towards becoming a truly multi-chain, accessible, and versatile stablecoin.”

The project team stated in an official publication. According to the release , integration with Ethereum will bring more stability and scalability to the largest smart contract ecosystem.

To attract users, the team announced an "exclusive airdrop" for early participants, as well as the creation of sUSDD, a savings account that will allow decentralized returns on deposits. Justin Sun reinforced the enthusiasm on X, declaring: "The decentralized stablecoin USDD has finally arrived on Ethereum! From now on, everyone has a decentralized option when it comes to stablecoins! USDD is booming!" The executive also highlighted that the stablecoin can offer up to 12% APY.

USDD combines smart contracts, overcollateralization, and market mechanisms to maintain its peg to the dollar. On Ethereum, it will feature a "Peg Stability Module," which will enable exchanges of USDD for USDT and USDC with low or no slippage, ensuring immediate liquidity and price stability. The team emphasized that the launch follows a security audit conducted by CertiK.

In August 2024, Tron DAO withdrew nearly $750 million in bitcoins that served as collateral for the USDD, making it primarily backed by the TRX token. Despite this, the organization pledged reserves of up to $10 billion, backed by major industry players, to strengthen the asset's protection.

Bluechip, an independent stablecoin rating agency, maintains an "F" rating for USDD, highlighting concerns regarding its decentralization and true collateralization, estimated at only 53%. Currently, there are approximately $460 million in USDD in circulation, down from the $750 million recorded in the same period last year.

According to the team, the expansion on Ethereum aims to increase the utility and adoption of USDD in DeFi protocols, leveraging the liquidity and developer base of the largest smart contract ecosystem on the market.