Research institutions and media affirm the 1st anniversary of USDD upgrade: TVL surpasses 1 billion, income generation 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: Yield, Peg Stability, and Multi-Chain Execution"; at the same time, TechFlow published an article titled "After $1 Billion TVL, Is USDD's 'Yield-Bearing USDT' Narrative Breaking into the Stablecoin Mainstage?" Both reports analyze the growth of USDD 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 yield as the core product strategy, emphasizing savings yield as the main value proposition through USDD Earn and sUSDD, offering interest rates higher than typical stablecoin market yields. sUSDD, as the primary savings tool, accumulates yield through a continuously rising redemption rate, integrating incentives into a single composable product, with Ethereum TVL exceeding $310 million.

Additionally, its issuance design balances yield demand with risk control, introducing interest rate-sensitive supply based on Vault minting on the TRON network, and prioritizing parity redemption through PSM on Ethereum and BNB Chain. Unlike most stablecoins, USDD relies on protocol-native mechanisms to enforce the peg, 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 high yield-driven adoption while managing risks through collateral buffers, interest rate controls, 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, with savings incentives shaping holding demand. 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 a major battleground for global stablecoins, and after the USDD upgrade to a decentralized over-collateralized stablecoin, it has enhanced stability through open minting and PSM modules, leveraging the mature stablecoin application ecosystem on the TRON network, thus experiencing rapid expansion.

In terms of yield acquisition and distribution models, USDD's Smart Allocator mechanism has accumulated over $9 million in yield, achieving a transition from subsidy dependence to self-sustainability. The data performance is quite impressive, with TVL reaching $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 but also stands out in user diversity.

TechFlow believes that USDD's growth phase strategy includes subsidy initiation, multi-chain deployment, sUSDD launch, and ecosystem collaboration. Positioned as the "yield-bearing 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, ecosystem integration, and community building.

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

The USDD official stated that over the past year, it has 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 yield.