Research institutions and media affirm the 1st anniversary of USDD upgrade: TVL surpasses 1 billion, interest-earning strategy reshapes the stablecoin landscape

Recently, the well-known industry research institution Messari released the USDD 2.0 upgrade anniversary report titled "One Year After the USDD 2.0 Upgrade: Earnings, Peg Stability, and Multi-Chain Execution"; at the same time, TechFlow published an article titled "After Reaching $1 Billion TVL, Is USDD, the 'Yield-Generating USDT,' Pushing Its Way to the Stablecoin Main Table?" Both reports analyze USDD's growth over the past year from different perspectives, affirming its strong performance and future potential driven by its yield-generating strategy.

Messari pointed out in the report that the first year of the USDD upgrade focused on earnings as the core product strategy, emphasizing savings yields as the main value proposition through USDD Earn and sUSDD, providing interest rates higher than typical stablecoin market yields. sUSDD, as the main savings tool, accumulates earnings through a continuously rising redemption rate, integrating incentives into a single composable product, with Ethereum's TVL exceeding $310 million.

Additionally, its issuance design balances the demand for earnings with risk control, introducing interest rate-sensitive supply based on Vault minting on the TRON network, and prioritizing pegged redemptions in Ethereum and BNB Chain's PSM. Unlike most stablecoins, USDD relies on the protocol's native mechanisms to enforce pegging, with minting, redemption, and liquidation rules playing a key role. USDD successfully adopts different dominant issuance mechanisms across environments to maintain peg stability.

The report emphasizes the trade-offs of USDD, which initially pursued a multi-yield-driven approach while managing risks through collateral buffers, interest rate control, and transparency, later focusing on stable and transparent yield distribution. Over the past year, USDD has attracted minting with appealing interest rates by adjusting stability fees and incentives, treating stability fees as the main supply cost, and shaping holding demand through savings incentives. This mechanism has enabled a transition from subsidy dependence to collateral support, maintaining an average collateralization rate of over 112%.

The TechFlow article focuses on the milestone event of USDD's TVL surpassing $1 billion on January 14, entering the core player table. The article argues that TRON is the main battleground for global stablecoins, and after USDD upgraded to a decentralized over-collateralized stablecoin, it enhanced stability through open minting and the PSM module, leveraging the mature stablecoin application ecosystem on the TRON network, thus ushering in rapid expansion.

In terms of earnings acquisition and distribution models, USDD's Smart Allocator mechanism has accumulated over $9 million in earnings, achieving a transition from subsidy dependence to self-sustainability. The data performance is quite impressive, with a TVL of $1.39 billion, a supply of 1.13 billion tokens, and 462,000 holding addresses. It not only ranks among the top ten projects in the stablecoin market by issuance volume but also stands out in user diversity.

TechFlow believes that USDD's growth phase strategy includes subsidy initiation, multi-chain deployment, sUSDD launch, and ecological cooperation. Positioned as the "yield-generating version of USDT," it meets user demands amid market volatility through staking, one-click yield collection, automatic appreciation, and DeFi integration. Looking ahead, USDD aims to advance from $1 billion to $10 billion by focusing on enriching yield strategies, ecological integration, and community building.

Both the report and the analysis article agree that USDD demonstrates resilience amid market volatility, with multi-chain layout and sustainable yield models being key drivers. Messari emphasizes operational evolution and risk management, while TechFlow highlights user base and ecological potential.

USDD officials stated that over the past year, they have been committed to building a solid foundation. By 2026, USDD's core goal is to achieve widespread real-world application and scalable expansion of sustainable earnings.