Proposal: Listing USDD and sUSDD on Venus BNB Core Pool

Proposals
1

Summary

This proposal seeks approval to list USDD and sUSDD in the Venus Core Pool on BNB Chain. sUSDD is the yield-bearing variant of USDD.

USDD has completed its upgrade to USDD 2.0 since Jan. 25, 2025. Following successful deployments on TRON and Ethereum, the protocol is expanding its footprint to BNB Chain—one of the most active DeFi ecosystems. Building on this momentum, with the protocol’s TVL now exceeding $500M, listing USDD and sUSDD on Venus will allow users to access one stable asset, and one yield-accruing collateral asset to further strengthen liquidity and stablecoin diversity within the Venus Core Pool.

Context

USDD represents a new generation of stablecoins built around transparency, sustainability, and composability.

USDD operates as a fully overcollateralized stablecoin, with its model adapting to different blockchain environments. On the TRON network, it is backed by a diversified basket of assets including TRX, sTRX, USDT, and USDC. Meanwhile, on Ethereum and BNB Chain, the protocol currently leverages the Peg Stability Module (PSM), which on BNB Chain already enables seamless 1:1 swaps between USDT and USDD. Looking ahead, the introduction of a Collateralized Debt Position (CDP) mechanism is planned, which will further expand the range of accepted collateral assets on these chains.

sUSDD serves as the yield-bearing representation of USDD. It accrues yield through the protocol’s Smart Allocator, which strategically deploys idle reserves from the Peg Stability Module into secure, yield-generating DeFi strategies. The Smart Allocator operates under strictly defined parameters and has undergone comprehensive audits by both CertiK and ChainSecurity, ensuring robust safety and full transparency.

On BNB Chain, USDD’s Peg Stability Module currently maintains $41M in USDT liquidity, supporting seamless 1:1 minting and redemption between USDD and USDT, ensuring a strong price peg and deep liquidity foundation.

Besides, USDD is expected to launch its governance in Q1 2026. At that time, we will introduce a decentralized governance framework that allows the community to participate in key decision-making processes—such as adjusting rates, setting collateral parameters, managing allocation strategies, and approving new assets.

Liquidity & Integrations

  • PSM USDT liquidity — ~$41M
  • PancakeSwap Pools (Launch on Nov 10):
    • sUSDD–USDT — ~$1M TVL
    • USDD–USDT — ~$1M TVL
  • Dex Aggregator:
    KyberSwap has integrated the USDD/sUSDD Peg Stability Module (PSM), enabling seamless swaps between USDD/sUSDD and USDT without slippage or impermanent loss.
  • Chainlink Oracles:
    Chainlink price feeds for USDD and sUSDD are being integrated and are expected to go live soon, providing reliable, decentralized price data for Venus protocol safety.

Proposal Details

  • Asset: Both USDD and sUSDD
  • Chain: BNB Chain
  • Pool: Core
  • Collateral Factor: To be finalized by Chaos Labs
  • Supply Cap: To be aligned with available PSM & Dex liquidity
  • Borrow Cap: No lending market will be established

Through this listing, Venus users will be able to supply USDD and sUSDD as collateral while earning its built-in real yield and the upcoming point rewards, and simultaneously participate in Venus’s lending market for additional returns.

Conclusion

The addition of USDD and sUSDD to the Venus BNB Core Pool represents the next step in the USDD multi-chain strategy, reinforcing stability and yield generation in a decentralized, fully collateralized model.

By combining the robustness of the Peg Stability Module with the sustainability of the Smart Allocator, USDD and sUSDD bring a new class of stable and yield-accruing collaterals to BNB Chain — strengthening both Venus’s ecosystem liquidity and user capital efficiency.

Details

2

Would it be possible to provide incentives to kick the market off on Venus? Also are there docs on how the yield is generated? Like the exact strategy being used here, and what about proof of reserve ?

Im very much in favour of listing a new stablecoin asset on our core pool but the community deserves to understand the risk behind it after the recent events

4

Hey Omar, thank you for the thoughtful questions. Happy to provide more clarity on incentives, yield generation, and reserve transparency.

1.Would it be possible to provide incentives to kick the market off on Venus?
Yes, we will. After USDD and sUSDD are listed on Venus, we plan to provide a competitive incentive package to bootstrap liquidity and encourage early user adoption on the platform.
In addition, we will probably launch the USDD ecosystem points program in January, and Venus will be one of the key protocols included in the campaign. Users who supply USDD or sUSDD, or use them as collateral on Venus, will be eligible to earn additional points.
These incentives are designed to attract initial liquidity, enhance the utilization of both USDD and sUSDD, and drive sustained user engagement on Venus!

2. How sUSDD yield is generated?
The yield comes primarily from the Smart Allocator, which deploys collateral assets into low-risk, on-chain stablecoin financial markets such as Aave, Spark, JustLend.

To accelerate USDD’s multi-chain expansion and support early ecosystem growth, we are also offering additional incentive rewards on top of the core yield. During this strategic growth phase, a portion of these incentives is temporarily supplemented by the Tron DAO Reserve.

Transparency Disclosure
For full transparency, we encourage you to review our official Treasury page. The dashboard clearly displays all key USDD financial metrics, including quarterly earned yield.
:link: Treasury

3. Transparency & Proof of Reserves
USDD maintains full on-chain transparency. All reserve assets and Smart Allocator positions can be verified here :link: Data

4. Liquidity & redemption safety
sUSDD can be unstaked into USDD at any time, with no lock-up.
USDD can be redeemed 1:1 for USDT through the PSM, with zero fees.
All minting/redemption flows are handled by immutable on-chain smart contracts.

We fully understand the community’s focus on risk assessment, especially given recent stablecoin events, and we are committed to providing complete transparency and ongoing technical engagement.

Happy to answer any follow-up questions or share additional materials if helpful.

5

Is it possible to include Venus to be part of your smart allocator strategy on BNB Chain after listing sUSDD and USDD on core pool? also is there a dashboard to see the smart allocator profile ? like a link to the smart contract on debank or something to help us understand the underlying risk more

More importantly do you have an established communication channel with the new leadership of Venuslabs and chaoslabs?

7

Hey Omar, thank you for your reply!

We are evaluating the inclusion of Venus in the Smart Allocator strategy on BNB Chain.

Regarding the Smart Allocator, all real-time positions and allocations are publicly displayed on our website: :link: Smart Allocator
This provides full transparency into current deployments and underlying risks.

And yes — we’re actively engaging with both Venus Labs and Chaos Labs, and trying to establish communication channels.

8

Hey, USDD team, thanks for sharing the proposal — Leon here from the Venus BD team.

We’d like to dive deeper into the details. Could you please send the full proposal to [email protected], cc to [email protected], and also include your Telegram contact?

We’ll follow up from there.

9

Hey Leon! It has been sent by email. Please check ：）

10

Well received, thanks!

11

Really glad to see this proposal. Since their upgrade I’ve noticed USDD getting more active across different chains, new partnerships, and so on. Quite a lot of TVL growth as well. Because of that, I think listing USDD and sUSDD on Venus is a good step. It gives us a stable and transparent asset to use as collateral, and sUSDD adds extra yield. The PSM liquidity and audited Smart Allocator also give a good base of safety. Overall this looks like a positive move for both sides and it is nice to see USDD continuing to grow steadily.

12

Thanks for the kind words! Excited to see USDD and sUSDD bring extra yield to Venus, and happy our growth is recognized：）

13

Awesome to see Venus adding more asset choices! Quick question, is there any depeg risk for USDD or sUSDD? and would users be able to redeem through the PSM promptly if such a scenario occurred?

14

Thanks for your question! There is no exit risk for either USDD or sUSDD.

  • sUSDD has no lock-up period — users can enter or exit at any time, and it is always redeemable 1:1 for USDD without restrictions.
  • USDD is hard-pegged to USDT at 1:1, and users can swap freely between the two.

In addition, the PSM (Peg Stability Module) supports instant, zero-fee swaps between USDD and supported stablecoins, starting with USDT. More stablecoins will be added over time to further enhance liquidity and flexibility for users.

2 Likes
15

This is a solid move for Venus. Listing USDD/sUSDD increases asset composability and allows for better on-chain risk diversification. It’s a clear step to deepen liquidity and drive healthier APY opportunities for the BNB Core Pool. LFG!

1 Like
16

Appreciate the support! We believe this integration will bring real value to both ecosystems.

Excited to keep building together! :rocket:

17

As USDD continues to enhance its stability mechanisms and collateral framework with greater transparency, listing USDD on Venus would provide users with an additional decentralized stablecoin option and help broaden the platform’s asset diversity in a measured, sustainable manner!