The stablecoin sector has new developments. A major exchange wallet recently launched a financial product with an annualized return of 13.8%, powered by USDD.

For those who may not be very familiar with USDD, let's first understand its underlying logic.

**From Algorithm Dependency to Fully On-Chain**

The January 2025 upgrade marks a watershed moment. USDD has completely abandoned its algorithmic stability mechanism and handed control entirely to users. What does this mean? Anyone can mint freely at any time, token rules are immutable, and balances cannot be frozen—all operations occur on-chain, with transparent and verifiable data. Backed by five audits from CertiK and Chainsecurity, the security level is maximized. The de-pegging risk? It is mitigated through the PSM arbitrage mechanism and 1:1 no-slippage exchanges, allowing it to firmly peg to $1. As of now, the total locked value across TRON/ETH/BSC blockchains has exceeded $800 million.

**A Self-Sustaining Economic Model**

Early USDD relied heavily on external subsidies to maintain stability, which was clearly unsustainable. The launch of Smart Allocator in June changed the game—this fully on-chain, transparent investment strategy enables the protocol to generate its own revenue. Official data shows a cumulative profit of over $7.2 million. In the long term, USDD aims to completely eliminate subsidy dependence and sustain its ecosystem through its own economic cycle.

**How to Participate in This Round of Financial Products**

On a major exchange wallet's discovery page, find the relevant financial activity entry point, and follow the steps to convert USDT→USDD→sUSDD. The current base annualized rate is 12%, with additional dynamic annualized components, reaching a total annualized rate of 13.8%.

This targets the future of stablecoins—a version that does not rely on centralized backing and is fully secured by on-chain mechanisms. Interested users can give it a try.