USDD and Morpho launch a 30-day incentive campaign: Share a reward of 30,000 USDD with a maximum additional subsidy of 2%

On February 10, the decentralized stablecoin USDD officially announced a new round of 30-day incentive activities in collaboration with Morpho. During the event, users can supply USDT to the sUSDD/USDT market on Morpho to participate in a reward pool totaling 30,000 USDD on the Merkl platform, with a maximum additional subsidy of 2% during the event. The event runs from now until March 11, 2026, at 8:00 AM (Singapore time). After lending USDT, users can also stake it as sUSDD and engage in circular lending operations, amplifying returns through leverage. This event also marks USDD's expansion into broader and more diverse DeFi scenarios.

Comprehensive returns from 8 rounds of circular lending can reach 38.75%

USDD officials pointed out that this event aims to further enhance the liquidity and lending activity of the sUSDD/USDT market, providing short-term enhanced yield opportunities for stablecoin holders. Due to the flexibility of this strategy, it is suitable for DeFi users with different risk preferences. It is estimated that with the current sUSDD base APY at 6%, the borrowing APY can be reduced to around 3% through activity rewards, and after 8 rounds of circular lending, the final yield can be increased to about 38.75% (excluding Gas costs). Considering that the TVL of sUSDD will continue to reach new highs in the future, the base APY will be adjusted downwards, with an estimated standard of 5.25% base APY, the yield from 8 rounds of circular lending will also remain around 21.91%.

As a representative of the "yield-bearing USDT," USDD provides users with a sustainable real yield of approximately 12% APY through sUSDD. Combined with this Morpho incentive, its penetration in DeFi scenarios is further expanded, making the returns from holding USDD and sUSDD more attractive. Among them, sUSDD, as the yield-bearing version of USDD, integrates the incentives of holding a single stablecoin into a more diversified stable income model.

Continuous expansion of DeFi scenarios enables USDD to achieve sustainable transformation

Since upgrading to version 2.0 on January 25, 2025, USDD has achieved a comprehensive transformation into a decentralized over-collateralized stablecoin. In terms of governance, the protocol has completely returned control to users, allowing anyone to mint, with tokens that cannot be frozen, and all collateral assets and risk parameters are publicly transparent and verifiable on-chain in real-time. In terms of the economic model, it has shifted from relying on subsidies to self-sustainability, deploying idle reserves of the protocol to high-quality DeFi protocols through the Smart Allocator mechanism, earning real yields and fully returning them to users, with cumulative earnings exceeding $10 million and approximately $20 million distributed to the community in earnings and subsidies throughout the year.

In the first year after the upgrade, USDD's TVL peaked at over $1.4 billion, with a supply peak exceeding $1.1 billion and over 462,000 holding addresses, demonstrating strong growth momentum and user confidence.

The USDD team stated, "The new round of incentive activities launched in collaboration with Morpho is an important step for USDD to continue deepening DeFi integration, aiming to provide users with a more flexible and efficient yield experience. USDD will continue to focus on safety, transparency, and sustainability to promote decentralized financial innovation, and we welcome the global DeFi community to participate actively." For more details, please visit the event page: ++https://app.merkl.xyz/opportunities/ethereum/MORPHOBORROW/0x29ae8cad946d861464d5e829877245a863a18157++.