Ethereum News Today: Decentralized Stablecoin USDD Redefines Cross-Chain Liquidity on Ethereum

USDD, a fully decentralized stablecoin pegged to the U.S. dollar, has officially launched natively on Ethereum, marking a significant milestone in its development as a multi-chain stablecoin. This move, which followed a full audit by CertiK, was announced on September 8, 2025, and introduces a Peg Stability Module (PSM) that allows seamless swapping between USDD, USDT, and USDC. The PSM ensures liquidity and stable pricing from the outset, enabling users to mint and swap USDD without slippage, thereby enhancing its usability across Ethereum's vast DeFi ecosystem [2].

The launch of USDD on Ethereum is seen as a major step toward broadening its accessibility and utility. As a decentralized stablecoin, USDD provides an alternative to existing stablecoins while maintaining transparency and decentralization. Justin Sun, founder of Tron, highlighted the significance of the deployment, emphasizing that users now have a fully decentralized stablecoin option on Ethereum. This move is expected to facilitate greater cross-ecosystem activity, as USDD can now be utilized in Ethereum-based lending, liquidity pools, and yield farming strategies [2].

To commemorate the launch, USDD has initiated a special airdrop for the Ethereum community, starting on September 9. The campaign aims to reward Ethereum users for their role in the DeFi ecosystem and marks the beginning of USDD's multi-chain journey. The airdrop includes tiered annual percentage yield (APY) rewards, with the highest tier offering up to 12% for users holding smaller total value locked (TVL) amounts. The APY decreases incrementally as TVL increases, down to a minimum of 6%. Rewards are automatically calculated daily and can be claimed every eight hours via the Merkl Dashboard. Users also have the option to consolidate their rewards for withdrawal [2].

The official Ethereum contract address for USDD has been published, and users are advised to verify it before interacting with the token: 0x4f8e5de400de08b164e7421b3ee387f461becd1a. This ensures that only the authentic native USDD on Ethereum is used, reducing the risk of scams or unauthorized forks. The token's deployment on Ethereum is expected to enhance its adoption and utility while staying true to its core principles of transparency, decentralization, and sustainable returns [2].

Looking ahead, USDD plans to introduce sUSDD, an interest-bearing variant of the stablecoin. This new version will allow users to earn passive returns on their stablecoin holdings through a fully decentralized and transparent savings system. The feature is designed to provide users with more control and flexibility, leveraging Ethereum's robust smart contract infrastructure. Future updates are expected to include additional collateral types, vaults, and savings mechanisms, further expanding USDD's integration with the Ethereum ecosystem [2].

The deployment of USDD on Ethereum underscores the growing demand for decentralized stablecoins and the increasing convergence of blockchain networks. As DeFi continues to evolve, the availability of multi-chain stablecoins like USDD is likely to play a critical role in enabling cross-chain liquidity and facilitating broader adoption. The introduction of the airdrop and the PSM positions USDD as a competitive player in the stablecoin market, offering a combination of stability, decentralization, and user incentives that align with the goals of both developers and investors [2].

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