USDD Stablecoin Launches on Ethereum, Targets 12% Yield

- Justin Sun’s stablecoin expands to Ethereum with DeFi tools and savings incentives. - Ongoing concerns about collateralization and stability challenge its adoption. Justin Sun's algorithmic stablecoin, USDD, has officially launched on Ethereum, marking its first venture outside the TRON blockchain. According to a September 8, 2025, report from The Block, the deployment introduces new decentralized finance (DeFi) tools to capture a broader market. Key features include a Peg Stability Module for low-slippage swaps and a savings solution called sUSDD, which offers up to 12% annual percentage yield (APY). To further incentivize engagement, the team also announced an exclusive airdrop for early adopters. The Peg Stability Module allows Ethereum users to swap USDD seamlessly against top stablecoins like USDT and USDC with minimal slippage. With the sUSDD savings feature, users can lock up their stablecoin holdings to earn a competitive yield. To bolster trust, the USDD development team confirmed that prominent blockchain security firm CertiK conducted a full audit ahead of the deployment. Despite these advancements, concerns over USDD’s stability and collateralization remain. Stablecoin ratings agency Bluechip recently assigned USDD an “F” grade, citing significant risks tied to its reliance on TRX, the native token of the TRON blockchain, for collateral. In August 2024, the TRON DAO Reserve controversially removed $750 million worth of Bitcoin from USDD’s reserves, which raised further transparency concerns. Analysts scrutinized this decision, noting that stablecoins like USDT and USDC maintain more diversified collateral models. As a result of these challenges, USDD's market presence has declined, with a September 8 report from The Block noting its circulating supply fell from $750 million in 2024 to $460 million. The TRON DAO Reserve launched USDD in May 2022, ambitiously promising to secure $10 billion in reserves. However, the stablecoin has struggled to gain momentum amid heightened regulatory scrutiny of algorithmic stablecoins, which intensified after the collapse of Terra’s UST. According to data from CoinMarketCap on September 8, at 16:15 UTC, USDD (USDD) traded at $1.001, with its 24-hour trading volume changing by 0.074%. During the same period, Ethereum (ETH) was priced at $4,358.85, with its trading volume increasing by 1.48%, while TRON (TRX) stood at $0.334, showing a 1.448% change in volume.