Stablecoin USDD tested in JustLend DAO's "Current Gold Mine": Risk-free starting at 6% annualized, TRX players can earn over 20% effortlessly

Recently, the stablecoin sector has achieved a significant breakthrough, with USDC issuer Circle successfully listing on the US stock market, far exceeding expectations in stock performance. This has attracted global institutions' close attention to the stablecoin space, prompting giants like Walmart, Amazon, JD.com, and Ant Group to lay out plans for their own stablecoins, making the stablecoin sector a global focal point.

In this feast of stablecoins, TRON stands out as a core trading infrastructure in the stablecoin field, and its early bet on the stablecoin sector is truly commendable. In addition to actively expanding USDT, TRON announced at the beginning of this year that it would upgrade its native decentralized stablecoin USDD to version 2.0. Now, USDD, with its excellent performance and wide application, is thriving within the TRON ecosystem, becoming the second-largest stablecoin after USDT and occupying an important position.

For the vast number of users, amidst the fluctuations of the cryptocurrency market, stablecoins have long transcended the traditional intermediary tools of trading. Users are more concerned about how to achieve wealth appreciation with stablecoins while ensuring safety.

Always at the forefront of the industry, TRON has keenly captured user needs. It cleverly combines USDD with TRON ecosystem's DeFi applications like JustLend DAO and Sun.io, creating a "crypto money market fund" lazy income solution, sparking a "stable win" income revolution. Regardless of market ups and downs, users can enjoy stable annualized returns by depositing USDD in JustLend DAO, opening a new chapter for steady wealth growth.

The "Hard Currency" USDD in the TRON Ecosystem

In the stablecoin field, TRON, with its leading ecological advantages, has become the undisputed first choice for stablecoin development. Even the highly anticipated USD stablecoin USD1, supported by the Trump family, successfully began its minting journey on its network on June 11. As the native stablecoin of the TRON ecosystem, USDD is naturally an important strategic move in its stablecoin landscape.

USDD, as a fully decentralized stablecoin, fundamentally differs from traditional stablecoins. It operates without relying on centralized institutions, strictly pegging the USD 1:1 exchange rate through an over-collateralization mechanism. This decentralized and over-collateralized characteristic gives USDD high transparency and stability, winning the favor of many users and investors.

In the TRON ecosystem, USDD holds a crucial position. It can not only circulate across chains and participate in various DeFi activities to earn returns but also has successfully entered the practical realm of the real world, being used in physical retail scenarios.

On June 5, TRON announced a partnership with AEON, allowing users to use TRON ecosystem's native assets TRX, USDT, and USDD for QR code payments in offline business stores through AEON's payment tool AEON Pay. This move has made USDD more than just a stablecoin in the crypto world; it has built a bridge between the real and virtual worlds, with its practicality and wide acceptance being regarded by many users as a true "hard currency."

Originally an algorithmic stablecoin in the TRON ecosystem, USDD underwent a significant upgrade in January this year, officially upgrading to version USDD 2.0. This upgrade is a qualitative leap, introducing a deeply optimized and meticulously refined collateral mechanism and achieving a fully decentralized governance model. In the new version, the control of the minting mechanism is entirely handed over to the community, allowing users to deposit collateral according to their needs and customize the collateral ratio to mint new USDD. This highly autonomous minting method not only enhances the democratic nature of decentralized governance but also improves the efficiency of fund usage, enabling users to participate more flexibly in the construction of the USDD ecosystem.

Currently, there are three main ways to obtain USDD. First, over-collateralized minting, which currently supports various high-quality crypto assets such as TRX, sTRX, and USDT as over-collateralized assets to mint USDD; second, using the PSM exchange tool to directly exchange USDT for USDD; third, directly purchasing on exchanges, currently supported on platforms like HTX, Bybit, MEXC, and BingX.

(First, minting USDD through over-collateralized TRX, sTRX, USDT)

(Second, directly exchanging USDT for USDD using the PSM tool)

Regarding minting fees, USDD has launched a series of discount activities, bringing tangible benefits to users. On June 15, USDD launched a new round of minting fee discount activities. During the event, the stable rate for different collateral ratios and minting fees for TRX-A, TRX-B, and TRX-C vaults was uniformly reduced to 0.5%, while the stable fee for the sTRX-A vault was significantly adjusted from the original 3% to 1%. The discount activity ends on July 15. This initiative greatly reduces the cost for users to mint USDD, stimulating their enthusiasm for minting and encouraging more people to participate in the USDD ecosystem.

In terms of expanding usage scenarios, USDD has been deeply integrated into multiple DeFi applications within the TRON ecosystem. Users can easily participate in a wider range of DeFi activities such as lending, staking, and trading to earn more returns. Clearly, USDD has become an indispensable "hard currency" in the TRON ecosystem, injecting strong momentum into the development of the entire ecosystem.

As of June 18, the issuance of USDD has surpassed 431 million, ranking third in the over-collateralized decentralized stablecoin sector (the top two are SKY (formerly Maker DAO)'s DAI and USDS). Among them, the assets collateralized in the USDD fund pool have exceeded $466 million, with a collateralization ratio of approximately 108%.

Three Revenue Paths for Stablecoin USDD in JustLend DAO and Sun.io: Risk-Free Returns Starting at 6% Annualized

In the context of market volatility, how to achieve stable returns through stablecoins has become a focal point for many investors. In January this year, USDD launched the USDD Earn staking yield activity. Users can earn interest simply by storing USDD stablecoins on JustLend DAO, with initial maximum returns reaching up to 20%. However, the returns decrease gradually as the amount of deposited funds increases, and all returns will be distributed in the form of USDD stablecoins, subsidized by the TRON DAO.

As of June 18, the USDD Earn staking yield activity has entered its fifth phase, covering DeFi protocols JustLend DAO and several exchanges including HTX and GATE. According to the current tiered structure, the annualized yield for USDD on JustLend DAO is approximately 6%, while the annualized yield on partner exchanges can reach up to 10%.

Based on different yield rates, participation methods, and involved DeFi protocols, the paths to earn returns can be categorized into the following three main types:

Path One: Risk-Free Demand Deposits, Yield 6%+ (Deposit USDD → Earn Interest Immediately)

The operation is extremely simple: directly store USDD on the JustLend DAO platform to earn interest, with the current risk-free annualized yield being approximately 6%. This model allows for flexible deposits and withdrawals, similar to a bank's demand deposit account, with zero risk and absolute safety of principal, and no limit on the amount, making it very convenient for investors seeking stable returns. In comparison, the real-time storage interest rate APY for Sky's USDS is only 4.5%, and DAI's real-time APY is merely 3.25%.

Path Two: "Yield Amplifier" for TRX Holders, Annualized Up to 15%+ (sTRX Staking + USDD Earning)

Users can stake TRX as sTRX on the JustLendDAO platform, then collateralize sTRX to mint stablecoin USDD, and deposit the minted USDD on JustLendDAO to earn interest. This way, TRX holders can enjoy dual rich returns from both sTRX staking and USDD storage. In the past seven days, the sTRX staking yield was 8.34%. The USDD deposit yield is about 6%, making the TRX-sTRX-USDD coin-based yield approximately 15%. If a continuous cycle is adopted (TRX-sTRX-USDD-TRX), the cumulative yield in TRX coin terms exceeds 20%.

Path Three: Zero-Cost Exchange + Flexible Investment (Sun.io: PSM + SunSwap)

This can be achieved through the two functions of SunSwap and PSM exchange on the one-stop trading platform Sun.io, where SunSwap supports purchasing any asset with USDD, such as SUN, JST, etc., from the TRON ecosystem, further expanding investment channels; while the PSM exchange tool supports a 1:1 fixed ratio exchange between USDD and stablecoins like USDT/USDC/TUSD, providing an excellent experience with zero slippage and zero fees.

If users hold USDT/USDC/TUSD, they can use PSM to exchange for USDD, and after the exchange, USDD can be used to purchase any tokens on SunSwap or directly participate in the USDD Earn storage yield activity on JustLend DAO.