Stability as a Guarantee of Trust: With frequent instances of decoupling in the stablecoin market, how has USDD managed to hold its ground?

Recently, several USD stablecoins have de-pegged, shaking the deep trust DeFi users have in the stablecoin sector and plunging the core promise of "stability" into an unprecedentedly fragile state. The reasons behind these de-pegging events are thought-provoking, and at the same time, they highlight the key advantage of USDD's resilience in this round of market volatility.

Analysis of the causes of anchorage failure

Beneath the surface of market chaos, the underlying patterns are clear. Beneath the glamorous exterior of these stablecoins, they often face three major dilemmas, hindering their long-term development:

1. Blindly pursuing high returns

Some stablecoins employ complex revolving lending strategies to amplify returns. While such models may be attractive in the short term, they lack long-term sustainability.

2. Lack of proactive management

Some teams have completely entrusted their token reserves to third-party fund management institutions, lacking proactive management and thus failing to mitigate potential risks in a timely manner.

3. Severe lack of transparency

The lack of on-chain data to support the debt repayment ability of tokens makes them prone to triggering market panic even with small redemptions. Once trust collapses, it is difficult to rebuild.

The lessons learned from this wave of decoupling serve as a clear warning: stability cannot be faked; it must be built on a foundation of transparency and solidity, and there are no shortcuts.

Why hasn't USDD decoupled from its peg?

USDD 2.0's design philosophy is extremely clear: only transparent and verifiable security mechanisms—not empty promises—can win users' trust. Every aspect of its architecture is dedicated to providing clear and real-time proof of the protocol's security and stability.

1. A sound deleveraging strategy for returns

USDD's Smart Allocator employs a sound and sustainable investment strategy, focusing on long-term stable returns rather than blindly pursuing high-risk leverage.

During the fund deployment process, USDD adopts a phased investment strategy, selecting and cooperating with platforms that have undergone rigorous screening and auditing to maintain high liquidity and security at all times. The USDD and JUST DAO teams monitor and dynamically adjust each step in real time, and continuously conduct internal audits and strategy optimization.

Furthermore, with the help of independent third-party audits, full-chain operation, and a completely transparent mechanism, USDD further strengthens its reliability, allowing users to track fund allocation, returns, and key data at any time.

2. Self-management, eliminating outsourcing

All investment decisions and operations are executed independently by the USDD and JUST DAO internal teams, without relying on any external fund management institutions.

All transaction hashes, holdings, and profit data are fully recorded on the blockchain and are publicly verifiable. Users do not need to trust any verbal promises and can verify each transaction themselves.

Smart Allocator data: https://usdd.io/sa

3. A completely transparent token system

All core data is completely public and accessible with a single click—whether you are a regular user or a professional analyst, you can view all the real data on USDD's collateralized positions, fund flows, etc., at any time.

• Contract address: https://docs.usdd.io/introduction/collateral-asset-contract-addresses

All USDD collateral is held in publicly auditable smart contracts. Users can verify the funds in the contract address at any time via a blockchain explorer, ensuring the safety and integrity of the collateral.

• Data page: https://usdd.io/data

The USDD data page displays key indicators such as collateral value and the debt status of various collateral assets in real time.

• Treasury Board: https://usdd.io/treasury

This dashboard tracks key financial metrics including revenue, expenses, net income, and cash balance, and is updated quarterly to ensure users can regularly monitor the growth and financial health of their agreements.

The fact that USDD has pushed data transparency to this extent demonstrates that it views business transparency as a serious commitment to its users, rather than a short-term move to cater to market trends.

4. Proven safe

USDD has successfully passed five independent audits conducted by top industry auditing firms such as ChainSecurity and Certik. The audits covered USDD's infrastructure, including the codebase, smart contracts, token integration, and application mechanisms.

All audit results show that USDD performs well in key areas such as asset security, functional accuracy, and access control, and there are no major vulnerabilities that could lead to financial losses or system crashes.

USDD also received a CertiK Skynet security score of 87.5 and an AA rating.

View all audit reports: https://docs.usdd.io/security/audits

Security optimization is a never-ending process

In January 2025, USDD upgraded from the algorithmic model (USDDOLD) to USDD 2.0, transforming into a stablecoin with the following characteristics:

Over-collateralization

• Decentralized, with user autonomy

• Running on the entire chain

• Cannot be frozen, tamper-proof

• Self-sufficient ecological economy

While other stablecoins are frequently facing trust crises, USDD is constantly strengthening its security and stability through rapid adjustments and continuous optimization, effectively protecting users' assets.

In the future, the USDD team will continue to optimize the protocol to ensure that it maintains strong risk resistance and user trust in an ever-changing market.