In the cryptocurrency market, stablecoins serve as an important bridge connecting traditional finance and the crypto world, with their stability and decentralization characteristics being at the core of industry exploration. USDD (Decentralized USD), as a decentralized and over-collateralized stablecoin, injects new vitality into the stablecoin sector with its unique design logic and technical architecture, providing users with safer and more transparent options for value storage and transactions.
The core positioning of USDD is to maintain a 1:1 pegged relationship with the US dollar, which relies on its over-collateralized mechanism design for realization. Unlike some algorithmic stablecoins that solely depend on algorithms to adjust supply and demand, USDD requires users to deposit cryptocurrency assets as collateral that far exceeds the value of the issued stablecoins, fundamentally reducing the risk of de-pegging due to insufficient collateral, making the value support of the stablecoin more substantial. In the context of severe fluctuations in the crypto market, over-collateralization acts like a 'safety barrier'; even if the price of the collateral assets falls significantly, it can ensure USDD's dollar-pegging attribute, greatly enhancing its risk resistance capability.