At three in the morning, I was awakened by my phone vibrating—Fed's Waller's dovish speech was trending: "Interest rates should be lowered by 50-100 basis points!" The group instantly exploded, everyone was shouting: "Bull market is returning quickly!" "Going all in!" I stared at the screen, my heart racing, yet I made a counterintuitive move: I transferred the 50,000 USDT I was ready to invest into @usddio's stablecoin pool.
My brother scolded me for being cowardly: "A rate cut is good news, aren't you going to rush in?" I smiled and said nothing. The only truth I learned from the last rate hike cycle: When everyone rushes forward upon hearing the gunfire, the ones who truly survive are those who check their magazines first.
Dovish speeches are not a charge signal, but rather a 'readiness check bell'
History repeatedly proves: a single word from the Federal Reserve can cause the market to soar 30%, but it can also lead optimists to blow up three times. When the news heats up, the most dangerous thing is not missing out, but betting all your principal on a 'possibility.'
Why did I increase my USDD position in the face of good news?
First, excessive collateral = 'anti-explosion armor' for news. Dovish speeches may reverse, but the 130%+ on-chain asset collateral behind USDD will not change. My principal is here, just like entering a bomb shelter—no matter how much outside news bombards, the value of my underlying assets remains unchanged.
Second, instant liquidity = seizing 'true opportunities'. When interest rate cuts are truly implemented and the market confirms the trend, withdrawing from the USDD pool only takes 3 minutes. Those who go ALL IN at the first hint may likely fall in the pre-dawn turbulence. My strategy is: let the news fly for a while, let the bullets stay in the chamber for three more seconds.
Third, stable returns hedge against 'missing out anxiety.' Is it the hardest to watch others soar? But my USDD pool is appreciating at an annual rate of 10%. Waking up every day with an increasing account allows me to calmly wait for the best hitting point—rather than buying at the highest emotional point out of fear of missing out.
My 'news-based survival method'
Stay calm for 24 hours after significant news is announced (avoid emotional trading)
During this time, deposit spare funds into the highly flexible USDD pool (funds are on standby but not at risk)
If the trend is confirmed, use USDD collateral for borrowing to increase positions (using stable assets to leverage opportunities, mindset is steadier)
Keep at least 30% of the USDD base position never to be sold (this is the source of my peace of mind)
This method allowed me to accurately bottom out near the lowest point during last year's violent rebound after the SVB crisis—not because I can predict the market, but because when others run out of ammunition, my USDD can always conjure up bullets.
This morning, my brother shared a screenshot of his full contract position, and I shared the real-time collateral asset panel of USDD: 'Your profits depend on a single word from the Federal Reserve, my safety relies on the 130% excessive collateral on-chain. Who do you think is more stable?'
@usddio doesn't give me the thrill of 'getting rich overnight,' but it provides the confidence of 'always having money to increase positions.' In this world where news sways the market, the highest level of freedom is not being forced to make decisions by anyone's words.