Ethereum News Today: Justin Sun's Decentralized Dollar Gambit Targets Ethereum's Liquidity Fortress

USDD, the decentralized stablecoin backed by TRON founder Justin Sun, has officially launched on the Ethereum blockchain, marking a significant expansion in its multi-chain strategy. The move, announced on September 8, introduces a Peg Stability Module (PSM) that enables direct, on-chain minting and swapping of USDD against major stablecoins such as USDT and USDC at a fixed 1:1 ratio. The deployment follows a full audit by CertiK, a leading security firm, and aims to integrate USDD into the largest decentralized finance (DeFi) ecosystem, enhancing liquidity and accessibility for Ethereum users [1].

The launch includes an airdrop campaign offering tiered yield rewards for early adopters, with annual percentage yields (APY) starting at 12% for lower total value locked (TVL) amounts and decreasing as liquidity increases. The Merkl Dashboard, used to manage reward distributions, allows users to claim rewards as frequently as every eight hours. This initiative is intended to incentivize participation and foster rapid adoption on Ethereum [1].

USDD’s expansion to Ethereum is part of a broader strategy to establish itself as a multi-chain stablecoin, having previously launched on TRON. The stablecoin operates on an overcollateralized model, with a 204.5% backing ratio primarily supported by TRX tokens. In August, Justin Sun removed $726 million in Bitcoin collateral from the reserve, further highlighting the evolving structure of the asset’s backing. The PSM mechanism was developed to address liquidity concerns and improve transaction efficiency, offering users a seamless experience without slippage or fees [1].

The timing of USDD’s Ethereum launch coincides with a record $165 billion in stablecoin supply on the network, with Tether (USDT) maintaining a dominant position with a market capitalization of approximately $169 billion. While USDD is significantly smaller in comparison—currently ranked among the top 20 stablecoins with a $456 million market cap—its multi-chain approach positions it to capture a growing share of the expanding stablecoin market [1].

Justin Sun emphasized the strategic importance of Ethereum as a key layer in the DeFi ecosystem, noting that the platform hosts the largest concentration of developers, protocols, and capital in decentralized finance. The native deployment on Ethereum minimizes counterparty risks typically associated with bridged tokens and strengthens USDD’s role as a decentralized alternative to centralized stablecoins. The move also supports broader ecosystem growth on TRON, including increased volume on SunSwap and rising borrowing activity on JustLend [1].

Looking ahead, USDD plans to introduce sUSDD, an interest-bearing version of the stablecoin designed to function as a decentralized savings instrument. This product aims to provide passive yield generation for users, further enhancing the utility of USDD within the Ethereum ecosystem. With its dual-engine model combining stability through PSM and yield through sUSDD, the protocol is positioning itself as a key player in the transition toward open, transparent, and inclusive financial infrastructure [3].

Source:

[1] Crypto Billionaire Justin Sun's USDD Stablecoin Launches on ... (https://finance.yahoo.com/news/crypto-billionaire-justin-sun-usdd-214614186.html)

[2] Ethereum's deep liquidity lures USDD for its largest chain ... (https://crypto.news/ethereums-deep-liquidity-lures-usdd-for-its-largest-chain-expansion-yet/)

[3] USDD natively deployed on Ethereum! Embarking on a ... (https://www.bitget.com/news/detail/12560604956090)

[4] USDD Stablecoin Officially Launches on Ethereum ... (https://www.cryptotimes.io/2025/09/08/usdd-stablecoin-officially-launches-on-ethereum-blockchain/)