I recently discovered a pretty interesting phenomenon—people holding Bitcoin often face a dilemma: either hold onto BTC tightly and miss out on other earning opportunities, or sell it to participate in yield-generating products. The recently launched WBTC Vault by USDD seems to aim at solving this problem.

Basically, it’s using WBTC as collateral to directly mint USDD, which can both release liquidity and avoid selling Bitcoin. Currently, WBTC is priced at over 81K, with a circulation of over 120k tokens. As the most trusted wrapped Bitcoin asset in DeFi, its liquidity is indeed impressive.

I noticed that USDD has designed a dual Vault structure to meet different needs. Conservative users can choose WBTC-A (collateralization ratio 150%, fee 2.5%), while more efficiency-seeking traders can go for WBTC-B (collateralization ratio 130%, fee 3.5%). This fee structure is quite competitive in the DeFi lending market—compared to traditional CDP models that are easily affected by market volatility, USDD’s 2.5% baseline interest rate remains relatively stable.

What’s even more interesting is that the play isn’t limited to lending. You can amplify Bitcoin exposure through cyclic strategies—deposit WBTC → mint USDD → swap for WBTC → deposit again—or deploy the low-cost minted USDD into platforms like Morpho, Gate, to seek higher yields and earn the spread. In this way, idle collateral assets turn into interest-earning capital.

From a protocol perspective, introducing WBTC also has practical significance for USDD. Originally, USDD mainly relied on assets within the TRON ecosystem. Now, with tokenized Bitcoin added, the collateral structure becomes more balanced and can better hedge against risks from a single ecosystem. Plus, Bitcoin’s deep global liquidity and market consensus can provide additional support during extreme market conditions.

Operationally, it’s quite simple—connect your wallet, deposit WBTC, and directly mint USDD. Users outside the TRON network can transfer via cross-chain bridges. The entire process is transparent and frictionless.

It seems USDD is evolving toward a more comprehensive DeFi liquidity layer, no longer just a stablecoin, but genuinely building infrastructure centered around Bitcoin. In the constantly evolving DeFi market, this design—retaining asset exposure while unlocking incremental value—is definitely worth paying attention to.