61% of USDD collateral now in one vault — funded entirely by HTX

USDD, the TRON-based stablecoin founded by Justin Sun, has recently launched a new vault, SA001-A, also called the “Smart Allocator.”

This vault has immediately grown to hold approximately $260 million in collateral, approximately 61% of the total collateral for USDD, and all of these assets came from Sun-advised HTX.

This vault places assets into lending protocols to help subsidize the yield paid by USDD, currently 20%. The vault is currently depositing in AAVE and Sun-founded JustLend.

However, the vault’s launch raises serious questions about how USDD is governed, where its assets are coming from, and the role of Sun.

No USDD governance

USDD’s governance page claims that “The governance framework of the USDD ecosystem is designed to be community-driven and decentralized, ensuring inclusivity, transparency, and adaptability.”

It continues, “Governance empowers stakeholders to make critical decisions regarding the protocol’s future, stability, and growth.”

Additionally, the FAQ for this project claims that “USDD is governed by a decentralized community where users actively participate in the protocol’s decision-making process. This ensures that no central authority controls USDD.”

Furthermore, USDD claims on Medium that the asset platforms for the so-called “Smart Allocator” are “selected by USDD and JUST DAO teams based on strict risk controls.”