USDD officially launches WBTC Vault, a new channel for Bitcoin collateralized minting

Decentralized stablecoin USDD announced the launch of two WBTC Vaults on the TRON network, allowing users to use WBTC as collateral to mint USDD. This adds a high-quality collateral option to the existing TRX, sTRX, and USDT Vaults, marking a further diversification of the protocol's collateral assets.

As the largest and most recognized Bitcoin tokenized asset by market capitalization, the addition of WBTC significantly enhances the diversity and robustness of the USDD collateral pool. It is reported that the newly launched WBTC-A and WBTC-B Vaults have minimum collateralization ratios set at 150% and 130%, respectively, with minimum loan amounts of $1,000 and $2,500. Users can also amplify returns through two efficient strategies: one is leveraging long cycles, where WBTC is collateralized to borrow USDD, then exchanged for more WBTC on a DEX to collateralize again; the other is cross-platform interest arbitrage, where USDD is borrowed and deposited into multiple yield mining pools to earn net interest spreads.

The USDD team stated that the launch of WBTC Vaults is an important step in diversifying collateral assets for the protocol, enhancing security and user experience, and will further strengthen USDD's market positioning as the "interest-bearing version of USDT."