USDD (USDD) Exchange

About USDD

USDD (Decentralized USD) is a stablecoin launched in May 2022 by the TRON DAO Reserve in the TRON ecosystem founded by Justin Sun. USDD targets a 1:1 peg to the US dollar. It originally launched as an algorithmic stablecoin using a TRX mint-and-burn mechanism similar to Terra's UST, but after the Terra collapse in May 2022 and USDD's own depeg to about $0.97 in June 2022, the TRON DAO Reserve added collateral and moved the protocol toward an over-collateralized model. USDD 2.0 launched on TRON in January 2025 with an over-collateralized design and a staking yield subsidized by TRON DAO, and it was deployed on Ethereum on September 8, 2025, according to Messari and DropsTab.

USDD supply and backing

USDD does not have a fixed maximum supply. New USDD is minted when demand increases and burned when holders redeem, with supply adjusting to maintain the dollar peg. The backing model relies on crypto assets and stablecoins held by the TRON DAO Reserve rather than on cash reserves or US Treasuries.
Supply — approximately 1.58 billion USDD as of October 2026, according to CoinGecko
Collateral — a basket of crypto assets and stablecoins, including TRX, sTRX, BTC, USDT, and USDC, held by the TRON DAO Reserve; the reserve composition and collateral ratio are published by TRON DAO and change over time
Peg Stability Module (PSM) — enables 1:1 swaps between USDD and USDT or USDC, allowing arbitrageurs to correct peg deviations
sUSDD — staked USDD earns a variable yield; the 20% APY announced for the USDD 2.0 launch in January 2025 was fully subsidized by TRON DAO, and current yields can differ
Chains — natively issued as TRC-20 on TRON; deployed on Ethereum since September 8, 2025; also available on BNB Chain

What determines USDD's peg stability

USDD's peg relies on layers of defense. The PSM provides the first line: any time USDD trades below $1, arbitrageurs can swap USDD for USDT or USDC at par through the module and sell for profit, which pushes the price back to $1. Over-collateralization provides the second line: reserve assets are meant to exceed the USDD in circulation, which absorbs a decline in TRX or BTC before the peg is threatened. Reserve rebalancing by the TRON DAO Reserve provides the third line: the published composition has shifted over time from TRX-heavy toward stablecoins, which reduces volatility exposure.

USDD's history includes depeg events (June 2022 and later in 2022) that tested earlier versions of the stability mechanism. The reserve is managed by TRON DAO Reserve, so holders depend on its published reserve data and management, and the collateral mix still includes TRX and other volatile assets.