[USDD]

USDD

Grade
F
Date of Rating:
June 4th, 2023
Last Change:
-
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
0.12
[M]
0.50
[I]
N/A
[D]
0.59
[G]
0.00
[E]
N/A
USDD Price
Last Update:
12/04/2024 19:00:19
$1.004
Market Cap
$722,619,737
24h Volume
$2,247,102
Collater­alization
53%
Type of Peg
Fixed - To Fiat
Type of Backing
Stables
Crypto
Data provided by Coingecko
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
0.12
[M]
0.50
[I]
N/A
[D]
0.59
[G]
0.00
[E]
N/A
Core Team
  • Justin Sun

Native Chains
  • TRON

[S]
[M]
[I]
[D]
[G]
[E]
0.12
0.50
0.00
0.59
0.00
0.00
USDD
F
  • USDD is issued and managed by the Tron DAO Reserve (TDR). Only whitelisted members of TDR can mint and burn USDD.

  • USDD is claimed to be an over-collateralized, decentralized stablecoin but it is substantially similar to the failed UST stablecoin (Luna <> UST). Only ~50% of USDD’s supply is backed by non-TRX collateral, nearly all of which is BTC. Stable assets in reserve comprise less than 2% of USDD's supply.

  • The wallet containing USDD’s BTC has been claimed by Huobi exchange as their own. As both USDD and Huobi are controlled by Justin Sun, we suspect commingling of assets.

  • We strongly recommend users NOT to use USDD.

USDD
Stability
Red Flag
0.12/1
Red Flag

The Stability factor is evaluated on the following:

1. Reserves Management - Quality, quantity, storage and segregation of reserve assets

2. Market Feedback - Indicators of market's confidence in a stablecoin derived from price and trade data

3. Mechanism - Stabilization methods that protect the stablecoin

USDD
Management
Moderate Risk
0.50/1
Moderate Risk

The Management factor is evaluated on the following:

1. Restrictions - What deterrents exist to prevent key personnel of stablecoin projects from unethical and illegal behavior?

2. Negative Track Record (if applicable) - Have key personnel been involved in scams, frauds or other illegal activities?

USDD
Implementation
Not Assessed
N/A
Not Assessed

This factor aims to assess risks arising from technical implementations – i.e, smart contract code and oracles. It is currently not assessed, but we plan for it to be evaluated in the future.

USDD
Decentralization
Moderate Risk
0.59/1
Moderate Risk

The Decentralization factor is evaluated on the following:

1. Platform Censorship Risk

2. Custodian Risk

3. Type of Collateral

4. Diversified Voting Power

5. User Censorship Risk

USDD
Governance
High Risk
0.00/1
High Risk

The Governance factor for on-chain stablecoins is evaluated on the following:

1. Voting Systems - Does the governance function have an appropriate process for voting encompassing proposal, quorum requirements and outcome implementation?

2. Anti-Governance Attack Measures - Are there appropriate preventive and reactive measures to counter governance attacks?

However, USDD does not have a public governance mechanism.

USDD
Externals
Not Assessed
N/A
Not Assessed

This factor seeks to incorporate external feedback mechanisms such as market and social sentiment into our internal ratings. It is currently not assessed, but we plan for it to be evaluated in the future.