Governance Attack Surface Review: USDD

USDD is a fiat-backed, algorithmic-assisted stablecoin with approximately $1.22B to $1.23B TVL across Ethereum and L2 roll-ups like Arbitrum, Optimism, and zkSync. The protocol utilizes USDD.sol for minting and burning via Transparent Proxy, while PegEngine.sol manages collateral. Governance controls critical parameters, including collateral ratios, fee structures, and bridge configurations. Reviews conducted in October 2026 focus on the smart contract vulnerability surface and the governance layer managed by the DAO and core development team.