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[TronDAO]

USDD

Grade
F
Date of Rating:
June 4th, 2023
Last Change:
October 14th, 2025
SMIDGE Scores
[S] Stability
[M] Management
[I] Implementation
[D] Decentralization
[G] Governance
[E] Externals
[S]
N/A
[M]
N/A
[I]
N/A
[D]
N/A
[G]
N/A
[E]
N/A
USDD Price
Last Update:
24/05/57758 08:40:00
$1.00
Market Cap
$497,989,131
24h Volume
$8,844,667
Collater­alization
97%
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]
-
[M]
-
[I]
-
[D]
-
[G]
-
[E]
-
Core Team
  • Hidden Name
  • Hidden Name
Audits
Native Chains
  • Chain
Links
Full Report
Scoring Guidelines
[S]
[M]
[I]
[D]
[G]
[E]
0.00
0.00
0.00
0.00
0.00
0.00
TronDAO
F
  • USDD by TronDAO is backed by reserves primarily invested in Aave v3 markets on Ethereum, TRX and staked TRX tokens, and stablecoins held for redemption liquidity.
  • Since TRX tokens are also issued by the TronDAO, they are classified as endogenous assets and considered invalid collateral. Excluding these endogenous assets, USDD is under-collateralized with a collateral ratio (CR) below 100%.
  • While USDD reserves supplied to Aave v3 are ultimately held in audited, third-party contracts owned by Aave, the corresponding receipt tokens are held in externally-owned accounts (EOAs). This presents a single point of failure with a high level of storage risk.
  • While USDD claims that governance is vested with a DAO, there are no hallmarks of a credibly decentralized management like a proposal process, onchain votes, or public discourse. A small group of insiders control the decision-making process.
  • De facto control of TronDAO rests with Justin Sun, who has a history of questionable business practices. This includes prior co-mingling of USDD reserves with affiliated entities and running a market manipulation scheme to inflate TRX trading volumes.
  • Suitability - We strongly recommend users not to hold USDD.

The following outcomes may improve factor scores and lead to a rating upgrade.

  • USDD becomes fully collateralized by eliminating exposure to endogenous assets (TRX and staked TRX tokens).
  • USDD reduces storage risk by transferring control of Aave v3 receipt tokens from EOAs to a protocol-owned smart contract.
TronDAO
Stability

USDD is backed by reserves invested in Aave v3 markets, TRX and staked TRX tokens, and stablecoins held for redemption liquidity. Aave v3 receipt tokens are held in externally-owned accounts.

Primary liquidity for USDD holders without an active loan is limited to reserves in the peg stability module.

TronDAO
Management

While USDD claims that management responsibility is vested with a DAO, there are no hallmarks of a decentralized management like governance proposals, onchain votes, or public discourse.

De facto control of the TronDAO rests with its founder, Justin Sun, who has been linked to questionable business practices.

TronDAO
Decentralization

USDD does not have any direct or indirect exposure to regulators. However, holding Aave v3 receipt tokens in externally-owned accounts creates custodian risk.

USDD is a protocol without token governance. Decision making is largely opaque and concentrated with insiders.

TronDAO
Governance

USDD does not have an operational, decentralized governance system. Holders do not have any legal or technical protection.

Users do not participate in onchain voting and remain at the mercy of a small group of insiders at the TronDAO who are not publicly known.