When the next stablecoin crisis occurs, can USDD withstand it? I can't say 100%, but it does have several defenses.

First is the over-collateralization safety net. Users must maintain a collateral ratio above the minimum threshold, and it supports a variety of collateral assets such as TRX, USDT, and others, diversifying risk. The system monitors in real-time throughout, and transparent on-chain collateral data can dispel user doubts—this can effectively suppress panic withdrawals caused by information vacuums during a collapse.

Second is the automatic liquidation mechanism. The rules are hardcoded; once triggered, they execute immediately. When collateral value depreciates and the ratio drops, liquidation starts instantly. There’s no room for human intervention, eliminating delays or unfairness. This can promptly resolve individual risky positions and prevent problems from spreading to the entire ecosystem.

Finally, the PSM module's price stabilization feature. USDD and USDT can be exchanged 1:1 without slippage, providing users with a psychological anchor—an exit route to convert back at face value during panic. Coupled with multi-chain liquidity deployment across TRX, ETH, BSC, the risk isn't concentrated on a single chain.

These mechanisms together indeed build many layers of defense. But systemic collapse, such black swan events, honestly, no one can guarantee safety.