Secure Framework

The USDD protocol is designed with a robust security framework to ensure the safety and integrity of user assets and the overall ecosystem. Comprehensive risk assessment processes are employed to identify, mitigate, and monitor potential vulnerabilities.

• Over-Collateralization

  • Ensures all minted USDD is backed by digital assets exceeding the value of the stablecoin.

  • Reduces the risk of insolvency during volatile market conditions.

• Real-Time Monitoring

  • Continuous tracking of collateral ratios and system health.

  • Alerts are triggered for under-collateralized positions or unusual activities.

• Smart Contract Audits

  • All smart contracts are thoroughly audited by independent third-party firms.

  • Ongoing testing ensures contracts are resistant to exploits and vulnerabilities.

• Liquidation Mechanisms

  • Automatic liquidation of under-collateralized vaults to protect the protocol from bad debt.

  • Efficient auction systems to maximize recovery value.

• Peg Stability Module (PSM)

  • Enables stable and zero-slippage swaps to maintain the USDD peg, even during market fluctuations.

  • Reduces systemic risks by balancing supply and demand effectively.

• Decentralized Governance

  • Critical protocol changes are subject to community review and approval.

  • Governance minimizes the risk of unilateral decisions that could compromise security.

By maintaining a proactive approach to risk assessment, the USDD protocol ensures its resilience and reliability in a dynamic blockchain environment.