Last night's event once again proved a truth: in the world of Web2, the algorithm is the sickle, and you are the chives.
Kuaishou's recommendation algorithm is designed to squeeze your time, while Kuaishou's human algorithm is meant to squeeze your cost-effectiveness. Once your ROI (Return on Investment) is calculated to be declining, the system will ruthlessly kick you out.
But in Web3, the role of the algorithm has reversed.
USDD 2.0 is a set of algorithms fully serving the holders. It does not calculate your KPI, nor does it assess your weekly reports; it only does one thing: tirelessly and endlessly through on-chain arbitrage and capital allocation, it fills your pockets with money.
1. PSM: The 'money-making machine' that works for you
While you are anxious about keeping your job, the PSM (Peg Stability Module) of USDD 2.0 is engaged in thousands of games per second on-chain.
This is an incredibly powerful machine. Research reports show that in the past two quarters, it has handled $5.2 billion in capital inflow and outflow. Each flow of funds and each exchange between USDT and USDD essentially adds to the market forces enhancing the stability of the protocol.
Unlike Web2 companies that monetize traffic into advertising fees for shareholders, the USDD protocol maintains a rigid peg of 1.00 through high-frequency liquidity management, protecting your asset purchasing power from being 'optimized' away by inflation and turmoil.
2. sUSDD: The confidence to resist the '35-year crisis'
Why are big company employees so afraid of being laid off? Because if they stop working, they stop eating.
The original intention of sUSDD (Staked USDD) design is to solve the problem of capital efficiency. With the operation of Smart Allocator, the exchange rate of sUSDD will unidirectionally rise with the injection of protocol profits.
This is a system that does not require 'involution'. The number of sUSDD you hold remains unchanged, but its value in dollars keeps growing. According to research report reference data, its benchmark APY once reached 12% (subject to real-time data). In that cold night filled with layoff notices, that small, certain, automatically growing green number might be the greatest dignity for adults.
3. Decentralized Governance: You are the shareholder
Kuaishou employees have no power over layoffs because they are just workers. But in the USDD ecosystem, through JST, you are the governor.
What should the mortgage rate be? How is the profit distributed? Where is the capital directed? These parameters that affect the fate of the protocol are decided by community voting. This decentralization of power fundamentally eliminates the tragedy of 'management directing blindly and lower-level employees paying the price.'
Conclusion
Both are algorithms: one makes you unemployed, and the other gives you freedom. The choice of which algorithm to use determines whether you will pay the cost of being 'optimized' or become a winner enjoying the dividends in the next cycle.
Disclaimer: The above content is the personal research and views of 'carving a boat to seek a sword', intended for information sharing only and does not constitute any investment or trading advice. The data is compiled from research report criteria/public information, please refer to official pages and on-chain data, DYOR. @USDD - Decentralized USD #USDD以稳见信
