Launch of USDD on Ethereum
The decentralized stablecoin USDD has officially launched on Ethereum, marking a notable shift from its original platform on the Tron network. This move aligns with the USDD team’s ambition to establish a significant presence across multiple blockchain ecosystems, further integrating the stablecoin into decentralized finance (DeFi). Announced on September 8, this deployment on the Ethereum mainnet comes after a thorough audit conducted by CertiK, a reputable security firm in the industry.
Innovations and Features
As part of this expansion, the USDD team has introduced a Peg Stability Module (PSM) which facilitates seamless on-chain minting and swapping of USDD with prominent stablecoins like USDC and USDT. This innovation signifies a shift away from traditional cross-chain bridging methods, as it allows USDD to be directly embedded within Ethereum’s liquidity framework.
Additionally, an enticing airdrop initiative aimed at incentivizing early users and liquidity providers is set to commence on September 9. This campaign will feature a tiered yield system, highlighting Ethereum’s critical role as a leading Layer 1 ecosystem brimming with opportunities for developers and investors in the DeFi sector.
Strategic Importance of Native Deployment
The strategic decision to launch USDD natively on Ethereum reflects a necessity for the stablecoin, which has primarily operated within the Tron network, to remain competitive and relevant. Native deployment is vital to reduce risks associated with counterparty failures that can arise from utilizing bridged tokens.
Community Engagement and Future Plans
Justin Sun, the founder of Tron and a key supporter of USDD, has taken to social media to express his enthusiasm regarding this launch, underscoring that it presents users with a unique decentralized stablecoin alternative. He encouraged engagement with mining activities that could yield up to 12% annual percentage yield (APY) for participants.
A noteworthy component of USDD’s expansion plans is the anticipated introduction of sUSDD—an interest-bearing variant of USDD, designed to act as a decentralized savings vehicle within the Ethereum ecosystem. This feature will enable holders to generate passive income on their assets while keeping them securely on-chain.
How to Participate
To acquire the Ethereum-native USDD and qualify for the ongoing airdrop, users need to transfer USDT or USDC directly into the PSM contract. Holders of USDD in non-custodial Ethereum wallets will be eligible for rewards distributed via Merkl, a platform engineered for precise reward distribution.
The system features a staggered yield mechanism, starting at a maximum of 12% for total locked values below $50 million, which declines to 6% as liquidity increases. This strategy is designed to reward early participants while ensuring sustainable growth of the platform. Accrued rewards can be claimed by users from the Merkl dashboard at frequent intervals, potentially every eight hours.
