2026-01-04 07:26:05

The TVL of the USDD stablecoin hits a new high, surpassing $940 million. Many people may ask, why are the liquidity supply(Supply) and the total value locked(TVL) not equal? Actually, the logic behind this is quite clear—the difference comes from the excess collateralization mechanism of the Vault.

But here, it needs to be clarified: where do the non-excess collateral parts come from? There are mainly two channels: one is the 1:1 redemption through the PSM channel, and the other is generated through USDT pegging. These two models themselves have a solid asset base, ensuring a high level of security. In other words, whether it’s the excess collateralization or the PSM redemption part, the risks are well-controlled. Therefore, the stability behind this data is indeed trustworthy.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
8
Repost
Share

Comment

0/400

ApeShotFirst

· 20h ago

9.4 billion TVL, to put it nicely, it's just the same old trick—over-collateralization combined with PSM punches. The nested stablecoin approach cracks me up, haha.

View OriginalReply0

CountdownToBroke

· 01-06 02:46

940 million? It sounds impressive, but the supply doesn't match the TVL, so we really need to think it through. PSM 1:1 redemption sounds stable, but when the black swan event hits, the so-called "risk control" on paper can sometimes be just a joke. Is the over-collateralization mechanism reliable? To be honest, I still feel a bit uneasy.

View OriginalReply0

ChainMemeDealer

· 01-05 20:47

94 million? How did this number suddenly jump up? Is the 1:1 PSM system really reliable?

View OriginalReply0

ProposalDetective

· 01-04 07:56

9.4 billion TVL sounds impressive, but I still want to see the actual flow of those PSM exchanges. Just talking about safety isn't enough.

View OriginalReply0

gm_or_ngmi

· 01-04 07:54

940 million is okay, but the explanation of PSM was too official. How does it actually perform in practice?

View OriginalReply0

EternalMiner

· 01-04 07:52

940 million breakthrough, PSM's 1:1 redemption system is indeed solid, much more reliable than some projects.

View OriginalReply0

CrashHotline

· 01-04 07:42

94 million? That number sounds pretty impressive... But the 1:1 redemption system of PSM ultimately depends on whether there's real money backing USDT.

View OriginalReply0

Layer2Observer

· 01-04 07:28

940 million sounds like a lot, but the difference between supply and TVL needs to be analyzed separately; you can't just look at the surface numbers.

View OriginalReply0