Sun Yuchen analyzes USDD 2.0 in a live broadcast and discusses issues related to Huobi HTX

On February 5th, Huobi HTX global advisor and TRON founder Justin Sun passionately spoke on Huobi HTX's Twitter Space with the theme "Can we still trust Brother Sun with USDD this time?" He provided an in-depth interpretation of USDD 2.0 and answered community questions regarding USDD and Huobi HTX. The live event received a strong response from the crypto community, with a peak of over 12,000 concurrent viewers.

Pegged 1:1 to the US Dollar, Multiple Mechanisms Keep USDD "Stable as a Rock"

Official information shows that USDD 2.0 is a decentralized stablecoin project on the TRON blockchain, launched on January 25 of this year.

Justin Sun mentioned during the live stream that although there are stablecoins like USDT and USDC in the current crypto market, there is still a lack of a truly zero-trust, zero-censorship, fully decentralized, never-freezing, and safe stablecoin, which is why he insists on launching USDD.

According to him, USDD 2.0 ensures its 1:1 peg to the US dollar through multiple mechanisms, including over-collateralization, liquidation and auction, risk management and real-time monitoring, PSM (Peg Stability Module), and decentralized governance, making USDD as stable as a rock.

Among these, the PSM module is the key technology that ensures USDD's 1:1 peg to the US dollar, allowing users to seamlessly swap USDD with other stablecoins at a 1:1 ratio in seconds, with only a small Gas fee required. This mechanism significantly reduces arbitrage risks and can quickly stabilize prices during supply and demand imbalances.

Additionally, users who have minted USDD know that they need to over-collateralize with qualifying assets (TRX, USDT) to start minting. This mechanism ensures that even in the face of market fluctuations—thanks to the stability of USDT and the high market liquidity and ecosystem support of TRX as a mainstream public chain token—the overall price volatility remains relatively controllable, and the value of the collateral will always exceed the amount of USDD minted, thus providing ample stability and minimizing risk.

Official data shows that as of February 6th at 16:30, the total collateral for USDD approached $130 million, with an over-collateralization ratio of 1.23 times.

Justin Sun emphasized during the live stream, "If you don't understand USDD, just think of USDD as a mirror Proxy of USDT."

APY Subsidy Up to 20%, Fully Decentralized USDD is Trustworthy

During the live stream, Justin Sun analyzed that users can exchange USDT at a 1:1 unlimited rate at any time, emphasizing that it is smooth, seamless, and barrier-free; using USDD on the TRON network is no different from using USDT, except for the higher interest.

How high is the interest? It is reported that the annualized yield for the T1 phase of the USDD staking activity is 20%, with these earnings coming from TRON's subsidies. Additionally, Huobi Earn is currently offering a temporary interest subsidy for USDD flexible products, with the adjusted APY also at 20%. It is reported that after launching this subsidy, the outstanding amount of USDD flexible products on Huobi Earn increased nearly tenfold. This means that users can deposit USDD directly into Huobi HTX or Justlend DAO to earn a stable 20% interest. Of course, users can also borrow USDT by collateralizing USDD, convert it back to USDD for staking, or directly deposit USDD to amplify their earnings.

It is reported that the USDD equity address marked as "LendSafeVault" TDrc3zH9wWufmQJyS7QLxBYH8GS27drW5N has deposited USDD worth $1,380,822.00.

During the live stream, community users were particularly concerned about the safety of the 20% yield subsidy for USDD. Justin Sun candidly stated, "How much is a fully decentralized stablecoin worth on the TRON chain? Think about it—this is the only decentralized choice among 60 billion USDT on the TRON network, and you will understand the value of USDD."

Regarding the application scenarios of USDD, Justin Sun revealed that USDD will first serve scenarios that USDT on the TRON chain cannot support. He also mentioned that they will actively promote cooperation with centralized exchanges, such as Huobi HTX and Poloniex, which may support using USDD-USDT equivalent margin for contract trading, launching a one-click USDD exchange function, and a USDD version of the Yubi Bao. Furthermore, cooperation with RobinHood is also being actively pursued.

Justin Sun also pointed out that it is only a matter of time before the Trump family's crypto project, World Liberty Financial (WLFI), increases its holdings of USDD.

Huobi HTX's Development Momentum is Strong, $HTX is About to Launch on a Compliant Exchange

It is worth mentioning that Justin Sun revealed during the live stream that $HTX will soon be listed on a large compliant exchange, and in the future, it will continue to empower $HTX, which is difficult for other centralized exchanges to match.

Additionally, when discussing the development of Huobi HTX, Justin Sun stated that its listing strategy places great emphasis on wealth effects, with all listing decisions based entirely on the team's independent research and judgment. He also highlighted the importance of listing efficiency, which is a unique competitive advantage for Huobi HTX. Based on these two points, Huobi HTX has maintained strong momentum in its development over the past two years. In the future, Huobi HTX and he himself will focus on the AI sector and may launch AI projects.