Ethereum News Today: USDD's Unbroken Security Record Sets DeFi Safety Benchmark

ChainSecurity, a leading Web3 security auditing firm, has completed its fifth audit of the decentralized stablecoin USDD, reinforcing the project's commitment to maintaining high security standards across its multi-chain ecosystem. The latest ChainSecurity's fifth audit, released as part of ongoing evaluations since USDD's 2025 upgrade to version 2.0, confirms the protocol's robustness in token integration, application mechanisms, and asset solvency. This audit follows four previous assessments by ChainSecurity and CertiK, all of which concluded with no critical vulnerabilities.

The audit focused on USDD's deployments across Ethereum and BNB Chain, two of the three major blockchains where the stablecoin now operates. Key findings highlighted the codebase's resilience in critical areas such as emergency shutdowns, deficit auctions, and event handling. USDD's decentralized, over-collateralized framework—built on a Collateralized Debt Position (CDP) model—enables users to mint tokens against diverse collateral, enhancing liquidity and cross-chain usability. The expansion to Ethereum and BNB Chain has further solidified USDD's position as a leader in DeFi security and asset transparency, according to the report.

ChainSecurity's fifth audit reaffirmed earlier conclusions from its prior reviews, which noted "satisfactory overall security" with only minor optimizations recommended for event handling and arithmetic operations. The firm also emphasized the importance of continuous monitoring for oracle and governance systems to mitigate risks such as governance delays. These findings align with CertiK's September 2025 audit of Ethereum-based USDD, which similarly validated the codebase's integrity and security.

USDD's security-first approach has been a cornerstone of its strategy since inception. The protocol's multi-chain expansion—now spanning TRON, Ethereum, and BNB Chain—has been accompanied by rapid growth in total circulation. Recent innovations, including the launch of yield-bearing sUSDD tokens in October 2025, have further diversified earning opportunities for users. Within three weeks of deployment, sUSDD achieved over $21 million in Total Value Locked (TVL), underscoring strong community confidence, the report noted.

The audit results come at a pivotal time for DeFi, where security remains a top concern for both users and institutional investors. By undergoing rigorous evaluations from top-tier firms like ChainSecurity and CertiK, USDD has set a benchmark for transparency in the stablecoin sector. The absence of critical vulnerabilities in five consecutive audits underscores the protocol's reliability, particularly as it scales across multiple blockchains and introduces new financial products, the report added.

Looking ahead, USDD plans to continue exploring on-chain opportunities to expand its stablecoin solutions globally. The project's emphasis on decentralized finance aligns with broader industry trends toward real-world asset tokenization and cross-chain interoperability. As DeFi matures, USDD's audit-driven security model may serve as a blueprint for other protocols seeking to balance innovation with risk mitigation.