USDD stablecoin supply increased 16.2% to $1.58B in July while collateral ratio declined to 142.98% on $2.26B reserves.
DeFi & Yields ·
USDD stablecoin's circulating supply expanded 16.2% during July to reach $1.58 billion, according to its monthly transparency report. Concurrent with this growth, the collateral ratio—a measure of reserve adequacy relative to outstanding supply—declined to 142.98%, with total reserves standing at $2.26 billion.
The mechanics show reserves increased alongside supply, though at a slower proportional rate. The collateral ratio's decline reflects that reserve growth did not keep pace with the expansion in stablecoin issuance, moving the protocol toward a lower cushion between backed assets and circulating tokens.
What remains unclear is whether the July growth trajectory represents typical seasonal demand or signals a directional shift, and whether the lower ratio reflects intentional capital efficiency or reserve constraints. The sustainability of this collateral level and its relationship to protocol risk parameters remain unstated in the available figures.