USDD
About
USDD is a fully decentralized, over-collateralized stablecoin pegged to the US dollar, operating across TRON, Ethereum, and BNB Chain. Users can mint USDD by depositing crypto collateral (TRX, USDT, etc.) into vaults, and earn yield by staking USDD through the sUSDD tokenized vault system. The protocol emphasizes transparency, multichain interoperability, and decentralized governance.
Where Does Yield Come From?
Yield is generated through the Smart Allocator, an automated investment system. It takes unused funds from USDD's cash reserve and puts them into conservative, low-risk opportunities on lending platforms like Aave. These investments earn returns in the form of interest and platform rewards.
After keeping aside a small risk reserve (a safety fund), the net profits are distributed to users who stake their USDD. This happens via a special yield-generating vault called sUSDD.
sUSDD is a yield-bearing version of USDD. Its value grows relative to regular USDD as it accumulates earnings. Each sUSDD token can be exchanged back for USDD at any time, with no lock-up periods.
The protocol's goal is to create sustainable yield that does not depend on external subsidies or temporary rewards.
The system also collects stability fees (minting fees) from users who create new USDD, and it has liquidation mechanisms that include incentives for keepers. However, the primary source of yield for end-users is the investment strategy returns earned by the Smart Allocator.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
ChainSecurity16-12-2024 - 24-01-2025 |
| The audit found no critical or high-severity vulnerabilities, with the single medium risk accepted and monitored. Overall security was deemed satisfactory, though continued internal QA and active monitoring of oracle and governance components are recommended. |
ChainSecurity16-12-2024 - 24-01-2025 |
| ChainSecurity's audit found one critical vulnerability that was resolved before completion, resulting in no open security issues and affirming a good level of security for the PSM implementation. |
ChainSecurity16-12-2024 |
| The audit found no security vulnerabilities in the USDD Exchange contract, with only minor informational issues acknowledged by the team, indicating a secure implementation for the token migration functionality. |
CertiK02-09-2025 |
| The audit found no critical or high-severity vulnerabilities, with all identified minor and informational issues either resolved or acknowledged by the USDD team, indicating a generally secure codebase for the Ethereum update. |
ChainSecurity19-09-2025 - 08-10-2025 |
| ChainSecurity's audit found no critical, high, or medium severity issues, with only minor low-severity and informational findings that were addressed, indicating the codebase provides a high level of security for the USDD deployment on Ethereum and BSC. |
Legal
Status and notes
Terms of Use and Privacy Policy (last updated 2025.01.04) hosted in documentation refer to "USDD Team" as provider. Copyright notice "Copyright © 2026 USDD. All rights reserved". Support email: [email protected]. Restricted access for users in United States and European Union. No legal entity, incorporation details, or imprint disclosed on official sources.