USDD AND THE DIFFERENCE BETWEEN SUPPLY AND COLLATERAL VALUE When evaluating a stablecoin, two important figures are its circulating supply and the value of assets supporting it. These numbers should never be confused. USDD’s collateralized design makes the relationship between issued stablecoins and eligible collateral particularly important. The total value of collateral provides information about the assets supporting the system. The outstanding USDD supply represents the stablecoin liabilities that need to be considered. Collateralization analysis must also account for the quality and eligibility of collateral, applicable Vault debt and other protocol obligations. A large collateral figure is not sufficient on its own to establish the complete risk position. Likewise, a growing supply does not automatically indicate stronger stability. Researchers should examine the relationship between assets and liabilities and understand the mechanisms used to manage collateral risk. Good stablecoin analysis begins with understanding what each metric actually measures. @justinsuntron #TRONEcoStar @USDDecentralize