Justin Sun’s USDD Launches on Ethereum, Enters the Stablecoin Battlefield

Justin Sun’s USDD stablecoin launched natively on Ethereum as the network’s stablecoin supply hit $165 billion. The rollout adds a Peg Stability Module for direct USDT and USDC swaps and offers up to 12% APY rewards.

Despite USDD’s smaller scale versus Tether’s $169 billion dominance, the move signals growing competition in the $2.5 trillion stablecoin sector.

USDD is an overcollateralized algorithmic stablecoin originally launched on the TRON blockchain, designed to maintain a dollar peg while offering high on-chain yields. Its Ethereum contract went live on September 8, following a CertiK audit. The Peg Stability Module (PSM) ensures efficient liquidity by allowing seamless 1:1 swaps with USDT and USDC.

An airdrop campaign began September 9, rewarding Ethereum users with tiered yields that start at 12% and gradually scale down to 6% as adoption rises. Rewards accrue continuously and are claimable every eight hours via the Merkl Dashboard.

As Justin Sun wrote on X: “From now on, everyone has a decentralized choice when it comes to stablecoins! USDD is growing! Swap for USDD and join mining activities with up to 12% APY!”

The decentralized stablecoin USDD has finally arrived on Ethereum! From now on, everyone has a decentralized choice when it comes to stablecoins! USDD is growing! Swap for USDD and join mining activities with up to 12% APY! https://t.co/BnOdt3ZfHL