USDD officially launches WBTC Vault, opening a new channel for Bitcoin collateralized minting
The decentralized stablecoin USDD announced the launch of two WBTC Vaults on the TRON network, allowing users to use WBTC as collateral to mint USDD. This adds a high-quality collateral option to the existing TRX, sTRX, and USDT Vaults, marking further diversification of the protocol's collateral assets.
As the largest and most recognized btc-42">Bitcoin tokenized asset by market capitalization, the addition of WBTC significantly enhances the diversity and robustness of the USDD collateral pool. It is reported that the newly launched WBTC-A and WBTC-B Vaults have minimum collateralization rates set at 150% and 130%, with minimum loan amounts of $1,000 and $2,500, respectively. Users can also amplify their returns through two efficient strategies: first, leveraging long cycles by using WBTC as collateral to borrow USDD, then exchanging for more WBTC on a DEX to re-collateralize; second, cross-platform interest rate arbitrage by borrowing USDD and depositing it into high-yield mining pools to earn net interest differentials.
The USDD team stated that the launch of WBTC Vaults is an important step in diversifying collateral assets, enhancing security, and improving user experience for the protocol, further strengthening USDD's market positioning as the "interest-bearing version of USDT."
-- Price
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