USDD

USDD arrived in mid-2022 with awkward timing, launching just as Terra's collapse had turned the market against algorithmic dollars. Justin Sun's TRON DAO Reserve pitched it as over-collateralized rather than algorithmic, backing supply with a mix of BTC, USDT, USDC and TRX, but the market was unconvinced: the token slipped from its peg within days of going live and fell below 97 cents again during the FTX failure that November, prompting the Reserve to deploy billions to defend it. It held on. The token is an over-collateralized onchain dollar minted by whitelisted institutions rather than redeemed by ordinary holders, and a later 2.0 version added a fixed yield paid to depositors who lock tokens with the Reserve. USDD circulates chiefly on Tron alongside BSC, Ethereum and BitTorrent Chain, and once secured authorized-digital-currency recognition in Dominica.