Don't write posts with a guilty conscience for that little reward. USDD is so stable; how much do you hold?

I believe everyone is aware that Balancer was hacked, resulting in the theft of $128 million, with the biggest impact on the Stream protocol's XUSD stablecoin. Since the theft began, the Stream team has publicly stated that the losses are huge, and XUSD started to decouple. Subsequently, the protocol was paused, and XUSD further began to be redeemed.

If the decoupling of XUSD is attributed to the hacker as a trigger, then its fundamental reason also lies in some of its own issues. I studied a bit and am here to compare various aspects of XUSD and USDD.

1/ Protocol underlying yield strategy

The underlying strategy of XUSD is a leverage of over 4X, with positions far exceeding the reserve assets. In fact, this strategy was already triggered to reduce positions during the Black Swan event on October 11. Such a strategy is still relatively aggressive and can be easily liquidated in extreme market conditions.