On August 24, the multi-chain decentralized over-collateralized stablecoin USDD announced the official launch of the Vault feature on Ethereum, supporting users to mint USDD using ETH and WBTC as core collateral assets. This upgrade is an extension based on the prior TRON chain Vault, indicating that the USDD Vault module officially enters the dual-chain drive and ETH + BTC dual-core mainstream asset collateral stage, providing more entry points for mainstream asset holders to participate in the USDD ecosystem.

In April of this year, USDD successfully launched the WBTC Vault on the TRON network, achieving for the first time the minting of USDD through Bitcoin collateral, thus creating a pathway for BTC assets to enter the USDD yield system. The introduction of this new Vault extends this capability to the Ethereum chain, expanding the collateral asset range from BTC to ETH and a broader range of mainstream digital assets, forming a dual-chain parallel structure with the original Vault on the TRON chain, further enriching the minting methods and funding application scenarios of USDD.

Creating a Yield Closed Loop Driven by Mainstream Assets

The new Vault is not only a minting entry point but also a core component of the USDD yield system. After users collateralize ETH or WBTC to mint USDD, they can seamlessly enter the USDD income and yield ecosystem, participating in various strategies such as sUSDD staking, liquidity provision, and circular lending. Unlike yield models reliant on short-term incentives, USDD utilizes Smart Allocator to allocate idle funds to mature and highly liquid DeFi protocols, continuously generating real yields for the ecosystem. This design makes mainstream assets like ETH and WBTC the starting point for entering a sustainable yield closed loop, achieving an integrated process of asset accumulation, minting, and yield generation.

The core highlights of this launch include that both ETH and WBTC serve as core collateral assets to support USDD minting, while the Vault expands from the TRON chain to the Ethereum chain, achieving dual-chain deployment and adding coverage for ETH mainstream assets. The entire closed loop path is clear and smooth, from collateral assets to minting USDD, and then participating in yield strategies, with final yields available for recouping or re-collateralizing, forming a virtuous cycle. Compared to similar competitors, USDD Vault has set a lower liquidation penalty, offers a higher capital efficiency and loan-to-value ratio (LTV), and the underlying portfolio yield is more competitive, providing users with a better on-chain minting experience.

Evolution from Stablecoin Product to Multi-Chain Yield Infrastructure

This launch of the Vault marks a comprehensive upgrade of USDD from a single stablecoin product to a multi-chain yield infrastructure. By officially incorporating leading assets like ETH and BTC into the minting system, the Vault becomes a key hub that connects mainstream assets with on-chain yields. Relying on the multi-chain native deployments of TRON, Ethereum, and BNB Chain, combined with diversified types of collateral assets, further enhances the protocol's resilience and risk management capabilities, making stablecoins no longer just passive holding tools, but structured assets that can continuously generate yields.

In terms of ecosystem expansion, the Vault will continue to attract ETH and WBTC holders to convert into USDD ecosystem users and become an important entry point for long-term asset accumulation. In the future, USDD plans to expand to more types of collateral assets and deepen cooperation with DeFi protocols, wallets, and infrastructure, while exploring application scenarios in emerging fields like AI. As the ecosystem continues to grow, users will gain more sustainable yield opportunities, DeFi strategies, and payment scenarios, thus further enhancing the practicality and capital efficiency of USDD and Vault collateral assets.

According to the latest data, the total value locked (TVL) of the USDD protocol has reached 2.23 billion USD, with a circulation of 1.49 billion coins, and the continuously growing asset scale and liquidity lay the foundation for the further expansion of the USDD multi-chain ecosystem. With the official launch of the Vault functionality on Ethereum, USDD will continue to use mainstream assets as an important entry point, enhance stablecoin minting and capital allocation efficiency, improve the multi-chain yield system, and promote the connection of more digital assets with sustainable on-chain yields, further evolving towards a multi-chain, composable yield infrastructure.