USDD supply rises to about $1.5B as version 2.0 launches ETH and WBTC vault borrowing on Ethereum
AI Market Summary
USDD 2.0 expands Ethereum DeFi borrowing by introducing overcollateralized ETH and WBTC vaults with a $400M combined debt ceiling and fixed stability fees, enabling users to mint USDD and swap 1:1 via PSM into USDT/USDC. This adds a new stablecoin liquidity route for ETH/WBTC holders and can increase leverage and liquidity efficiency across money markets and yield venues, while concentrating risk in vault parameters and liquidations.
Impact level
● Medium
Affected assets
ETH/USDT+5.28%
AI Insight · ETH/USDTAI Insight
▲ Bullish
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Decentralized stablecoin USDD’s supply has increased from about $1.1B to about $1.5B, with total collateral value of about $2.24B. USDD 2.0 has launched overcollateralized borrowing vaults on Ethereum backed by ETH and WBTC, with six vaults and a combined $400M debt ceiling. ETH vaults allow up to 76.9% max LTV with 4.25%–5% stability fees, while WBTC vaults allow up to 74.1% max LTV with 4%–4.5% stability fees; both carry a 13% liquidation penalty. USDD minted from vaults can be swapped via the PSM 1:1 into USDT or USDC, providing a new stablecoin liquidity route for Ethereum DeFi.
