The collapse of UST in 2022 was like a financial earthquake, revealing how fragile a system relying on a single asset can be. Fast forward to today, USDD has evolved over three years into a different form — no longer a paper tiger, but a thoughtfully constructed defense system.

Algorithmic stablecoins used to be the "alchemy" of the crypto world, with people expecting them to be invincible. But the success of USDD lies in abandoning that illusion and taking a more pragmatic approach. From a conceptual idea on paper to a real multi-asset backing, this marks a complete shift in thinking.

The key turning point was the collateralization mechanism. The problem with UST back then was simple — single asset backing, and if the main pillar wavered, the entire system would collapse. USDD learned from this lesson and embraced a transparent over-collateralization model. On-chain data shows that USDD’s collateralization ratio remains stable between 130% and 200%. This is not just a numbers game. The collateral pool includes not only TRX but also BTC, USDT, and other mainstream assets. In other words, multiple pillars support a ceiling — if any single asset encounters issues, the entire system can still operate smoothly.

Beyond collateral innovation, USDD also leverages the natural advantages of the TRON ecosystem. The ecosystem’s activity level and diverse application scenarios directly enhance the stablecoin’s liquidity and utility. This is not just a technical issue but a reflection of ecological synergy.

From a market cycle perspective, these three years are the best test. Reaching today’s position shows that USDD’s design is not just theoretically sound but truly capable of standing firm in complex market environments.