On August 27, the decentralized stablecoin USDD announced the first-phase incentive data for its sUSDD market partnership with Pendle and officially launched the second-phase incentive program. The first phase provided over $300,000 in reward subsidies, driving the sUSDD market on Pendle to a peak TVL of nearly $40 million. The second-phase incentive has been increased to a total value of $600,000—double that of the first phase—further enhancing user returns. The consecutive rollout of these initiatives demonstrates that USDD’s diverse and multi-strategy yield offerings have gained recognition from the market and leading platforms, highlighting its strong capabilities as a stable, secure, and transparent DeFi product.
Outstanding performance; the first campaign has successfully concluded.
During the initial incentive period, USDD partnered closely with Pendle, providing over $300,000 in reward subsidies for the sUSDD market. During the campaign, the sUSDD market’s TVL peaked close to $40 million, with the PT fixed yield consistently remaining above 7%. Additionally, PT-sUSDD was successfully listed as collateral on the Morpho market, enabling users to borrow USDT and USDC, effectively creating a circular lending demand and further enhancing user capital efficiency and market activity.
Pendle’s fixed-income market, as a key infrastructure in the DeFi fixed-income space, provides highly flexible yield management tools through its innovative mechanism of splitting principal and yield rights for separate trading. By integrating with the Pendle market, sUSDD has expanded the stablecoin yield model beyond simple holding to include fixed-income strategies, yield rights trading, and liquidity protocols, enabling deeper integration of USDD into the mainstream DeFi yield ecosystem.
The successful conclusion of the first phase fully demonstrates the appeal of sUSDD in fixed-income and leverage strategy scenarios, laying a solid foundation for the seamless transition to the second phase of incentives.
Rewards Doubled: Phase Two Continues with Three Key Strategies
According to official announcements, the second phase of incentives officially launched on August 27 and will run until November 26, totaling 91 days. The total reward value for this phase reaches $600,000, doubling that of the first phase. Users can seamlessly continue participating after their first-phase rewards expire, enjoying compounded growth.
Building on the success of Phase 1, Phase 2’s core incentives feature two key highlights: first, the initial reward for PT is 5%, and users can further amplify their returns through leveraged lending via Morpho; second, the initial reward for YT is 1%, and it will gradually increase as the market’s TVL grows.
To accommodate varying user risk preferences, Phase 2 of the campaign continues to offer three strategies. In Strategy A, users purchase PT-sUSDD to lock in fixed returns and can combine it with revolving loans to amplify yields. In Strategy B, users can earn excess flexible returns by holding YT-sUSDD. In Strategy C, users can provide liquidity to earn trading fees and additional incentives.
Users can visit the event page to participate: https://app.pendle.finance/trade/markets/0xbeab098b510f758cd35122ee345957b8eccbb322/sy-converter/unwrap?view=pt&chain=ethereum.
Diversified collaborations continue to deepen, enhancing the practicality of USDD.
This renewed collaboration with Pendle underscores USDD’s ongoing efforts to expand its ecosystem and enhance asset utility. By integrating with leading DeFi protocols such as Pendle and Morpho, USDD not only provides users with a stable yield-generating channel but also further enriches the use cases of sUSDD in fixed income, leveraged cycling, and liquidity provision scenarios.
Currently, the USDD supply exceeds $1.5 billion, the protocol's TVL has reached approximately $2.22 billion, and the cumulative investment returns from Smart Allocator have surpassed $26.25 million. With its dual security mechanisms—over-collateralization and PSM 1:1 redemption—alongside the sustainable yield model of Smart Allocator, USDD is steadily solidifying its market position as the "interest-earning version of USDT."
Through ongoing deep collaborations with leading DeFi protocols, USDD is evolving from a single stablecoin into a decentralized financial infrastructure that combines stability, yield generation, and composability. This not only enhances USDD’s market competitiveness but also provides users with richer and more flexible asset allocation options, further strengthening its practical value and long-term impact within the DeFi ecosystem.