About USDD token (USDD)

USDD token Frequently Asked Questions (FAQ)

What is the peg of the USDD token, and how does it maintain its value stability?


The USDD token is pegged to the US dollar, aiming to maintain a 1:1 value ratio. It maintains its value stability through an algorithmic mechanism that adjusts supply based on market conditions, incentivizing holders and traders to arbitrage and hence stabilize its price.




Who is responsible for issuing and managing the USDD stablecoin?


TRON DAO and its partners are responsible for issuing and managing the USDD stablecoin.




Can USDD be used on blockchains other than TRON, and if so, which ones?


Yes, USDD can be used on blockchains other than TRON, including Ethereum and BNB Chain (formerly Binance Smart Chain), facilitating cross-chain compatibility.




What is the role of the TRON DAO Reserve in the USDD ecosystem?


The TRON DAO Reserve plays a crucial role in maintaining the stability of USDD, a decentralized stablecoin in the TRON network. It manages the collateralization, handles risk and ensures the overall stability of USDD by regulating its supply and maintaining a stable price pegged to the US dollar.




How does the TRON DAO Reserve ensure the over-collateralization of USDD?


The TRON DAO Reserve ensures the over-collateralization of USDD by maintaining a reserve with a mix of highly liquid cryptocurrencies that exceeds the total supply of USDD. The reserve adheres to strict risk management protocols and maintains a collateralization ratio above 130%, which is monitored and adjusted regularly to ensure stability and reduce the risk of insolvency.




What cryptocurrencies are used to back the USDD stablecoin?


The USDD stablecoin is backed by a reserve composed of different cryptocurrencies, including but not limited to, TRON (TRX), Bitcoin (BTC), and Tether (USDT).




How much USDD is currently in circulation and what is the total collateral held?


The current amount of USDD in circulation fluctautes based on issuance and redemption. To obtain the latest information about USDD in circulation and its total collateral held, please refer to the official USDD website or other reliable cryptocurrency market tracking tools.




What makes USDD's smart contract functionality unique for users?


USDD's smart contract functionality offers advanced features such as algorithmic stability mechanisms, on-chain governance, and yield earning opportunities. It ensures price stability through an automatic pegging system and allows users to participate in governance decisions, providing a decentralized and user-centric approach to stablecoin management.




How does USDD maintain a stable exchange rate during adverse market conditions?


USDD maintains its stability through an algorithmic mechanism that automatically adjusts its supply and uses a reserve with other cryptocurrencies to buy back and burn USDD when its price falls below the peg. During adverse market conditions, the system incentivizes users to either buy USDD at a discount or to sell collateral at a premium, which helps restore the balance between supply and demand, thus maintaining the stable exchange rate.




What is the authorized cap for USDD tokens, and how much of it has been issued?


The authorized cap for USDD tokens is not fixed and can fluctuate according to market conditions since USDD is designed to be a stablecoin whose supply adjusts to maintain its peg to the US dollar. The amount of USDD issued depends on current demand and collateral rates; hence, real-time statistics need to be checked for the exact amount in circulation.