USDD, the TRON-based stablecoin based by Justin Solar, has just lately launched a brand new vault, SA001-A, additionally referred to as the “Smart Allocator.”
This vault has instantly grown to carry roughly $260 million in collateral, roughly 61% of the whole collateral for USDD, and all of those property got here from Solar-advised HTX.
This vault locations property into lending protocols to assist subsidize the yield paid by USDD, at the moment 20%. The vault is at the moment depositing in AAVE and Solar-founded JustLend.
Nevertheless, the vault’s launch raises severe questions on how USDD is ruled, the place its property are coming from, and the function of Solar.
No USDD governance
USDD’s governance web 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.”
Moreover, the FAQ for this mission 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.”
Moreover, 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.”
Learn extra: USDD’s TRON DAO Reserve shuts down its DAO
Regardless of this declare, a overview of the JUST DAO doesn’t embrace any votes associated to the launch of this vault.
There are literally no governance votes associated to USDD in any respect. Neither is there any proof of any decentralized governance for USDD in any respect, regardless of the repeated claims that it exists.
USDD funds from HTX
Additional elevating considerations is the supply of the funds which were positioned into this vault.
The funds that had been deposited into AAVE got here from 0x18709E89BD403F470088aBDAcEbE86CC60dda12e, an HTX handle. HTX is an alternate suggested by Solar.
The funds that had been deposited into Solar-founded JustLend initially got here from TDToUxX8sH4z6moQpK3ZLAN24eupu2ivA4, one other HTX handle.
Learn extra: Justin Solar saved USDD reserves at HTX for proof-of-reserves
These transactions come a few weeks after HTX engaged in a wierd collection of AAVE transactions wherein it briefly withdrew big portions of funds, spiking charges, earlier than returning a lot of the funds to AAVE.
Broadly, the dearth of decentralized governance and the provenance of funds coming from Solar-advised HTX elevate severe considerations about Solar’s function in USDD.
Protos reached out to USDD to find out why there was no governance vote associated to the launch of this vault, however it didn’t instantly reply.
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