The first experience of stablecoin liquidity release|USDD has achieved revenue of 2.7M Recently, I have been out there without paying attention to the market and on-chain situation, and inadvertently opened the USDD panel and found that Smart Allocator has earned $2.72 million, and I see a new angle: stablecoin utilization. In fact, everyone knows that stablecoins exist to anchor value, and as a risk management currency, can there be further liquidity release and development? Otherwise, a large number of stablecoins will be deposited idle on the chain, but in fact, stablecoin utilization is a double-edged sword. I think USDD's Smart Allocator is an initial exploration of this, users exchange their USDT for USDD through the PSM module, during which there is no wear and tear and slippage, so there will be no price fluctuations, so there will be no unpegging here, which is also the key to liquidity re-utilization. Secondly, the strategy selection of Smart Allocator, in the demand deposits of AAVE and Justlend, fully guarantees security and liquidity, so the current path of Smart Allocator is to link USDT and USDD through PSM, and then choose the strategy with the highest security level. As I said, the increase in stablecoin utilization is a double-edged sword, and everyone should be familiar with the term serial liquidation, and the thunderstorm under extreme market conditions is really very terrible, which is also the advantage of USDD, no need to worry about unanchoring, and no need to worry about liquidity. @justinsuntron @usddio_cn
Show original
54.8K
7
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.