USDD launches dual market borrowing incentives on Morpho with an 80,000 USDD reward pool to enhance liquidity

On March 11, the decentralized stablecoin USDD announced the launch of a new round of borrowing incentive activities on the decentralized lending protocol Morpho. This event covers two major lending markets: sUSDD/USDC and sUSDD/USDT, with a total reward budget of up to 80,000 USDD. The aim is to further enhance market liquidity and borrowing activity, providing DeFi users with more attractive stablecoin yield options. The incentive activity will last for 30 days and will officially start on March 11, 2026, at 8:00 AM (UTC+8).

Dual Market Borrowing Incentives Launching Simultaneously, Additional Up to 2% Reward Subsidy

This round of incentive activities includes two markets, targeting USDC and USDT borrowers:

1. USDC Borrower Incentive (Phase 1)

Target: sUSDD/USDC Market--USDC Borrower

Reward Budget: 30,000 USDD

Reward APY Cap: 2%

Activity Period: 30 days

Start Time: March 11, 2026, 8:00 AM (UTC+8)

Participation Link: https://app.merkl.xyz/opportunities/ethereum/MORPHOBORROW/0xad73d5e139a939a0c7dc7b821e5a103a3a9cf45c

2. USDT Borrower Incentive (Phase 2)

Target: sUSDD/USDT Market--USDT Borrower

Budget: 50,000 USDD

Reward APY Cap: 1%

Period: 30 days

Start Time: March 11, 2026, 8:00 AM (UTC+8)

Participation Link: https://app.merkl.xyz/opportunities/ethereum/MORPHOBORROW/0x29ae8cad946d861464d5e829877245a863a18157

During the event, users can participate in reward distribution on the Merkl platform by borrowing USDC or USDT after collateralizing sUSDD in the sUSDD-related markets on Morpho, enjoying additional subsidy income. To further amplify returns, users can also re-stake the borrowed funds as sUSDD, implementing a leveraged strategy through circular borrowing operations. Currently, the basic yield for sUSDD is 5%, and with the additional subsidy from the borrowing pool, users are expected to achieve leveraged strategies through circular borrowing operations. This strategy offers high flexibility, catering to DeFi participants with different risk preferences.

USDD officials stated that the core goal of this incentive plan is to enhance the liquidity depth and borrowing activity of the sUSDD-related markets while creating short-term enhanced yield opportunities for stablecoin holders. As the yield-generating token of USDD, sUSDD focuses on building a robust yield model. The launch of this dual market incentive not only deepens the integration with the DeFi ecosystem but also further validates the market appeal of sUSDD as a "yield-generating stablecoin."

Strong Momentum, Rapid Expansion of sUSDD Lending Ecosystem

The launch of this dual market incentive activity is rooted in the continuous outstanding performance and rapid development of sUSDD within the Morpho ecosystem.

Public data shows that within just one month of the launch of the sUSDD/USDT lending market, its TVL exceeded 40 million USD. In the following two weeks, the TVL of sUSDD/USDT skyrocketed from 40 million USD to 60 million USD, achieving a rapid growth of 50%, fully reflecting the strong demand for yield-generating stablecoin strategies in the market. This growth momentum not only secures sUSDD's position as the second-largest USDT lending market in the yield-generating stablecoin sector on Morpho but also paves the way for the launch of the second phase of USDT borrower incentive activities.

While achieving significant growth in the sUSDD/USDT market, the USDD ecosystem is further expanding. The sUSDD/USDC lending market, selected by top risk management firm Gauntlet, officially launched on Morpho on March 4, with an initial supply cap set at 15 million USD. The launch of this market further enriches the lending scenarios and capital efficiency of sUSDD, providing DeFi users with more diversified yield options. The USDC borrower incentive activity launched is the first incentive plan following the market's launch.

Officials stated that with the start of new incentive activities and the continuous expansion of the lending market, the lending ecosystem of USDD on Morpho is entering a rapid growth phase. In the future, USDD will continue to promote the application of sUSDD in more DeFi scenarios, further unleashing the potential of stable yield assets combined with decentralized finance.