WLFI's USD1 stablecoin quickly became popular after its launch. In the short term, daily trading volume exceeded 300 million USD, and community activity remained high.
But any long-term observer would ask one question: If there is no support, where will the future of this stablecoin go?
Three possible outcomes
Staying at the payment layer
USD1 may be accepted by some communities as a means for peer-to-peer payments or trading pairs;
However, this type of scenario has low barriers, making it easy to be squeezed by USDT and USDC, and difficult to form unique value.
Become an arbitrage tool
Frequently used in liquidity pools and cross-chain bridges, bringing short-term demand;
Unfortunately, it lacks sustained stickiness; once the window of profit closes, demand dissipates.
Lack of risk buffering leads to rapid decline
The rhythm of unlocking combined with market volatility, without risk control support, will intensify emotional backlash;
There have been similar historical failures.
Lending market: the fourth path
Compared to the above three types, the lending market provides another possibility:
Stablecoins are collateralized and borrowed, forming rigid demand;
The lending cycle generates long-term capital stickiness;
The risk control system understands the uncertainty brought about by hedging and volatility.
This path is the key for stablecoins to enter the infrastructure layer.
Why Dolomite?
Mainstream protocols have limited openness to new assets, and WLFI's USD1 does not easily enter the lending market.
$DOLO The characteristics just happen to fill this gap:
Breadth: Supports over 1,000 types of assets, friendly to emerging assets;
Safety: tiered clearing mechanism to reduce systemic risk;
Efficiency: Collateral assets still retain staking rewards and governance rights, improving capital utilization.
This means that USD1 does not have to stop at payment or arbitrage but can find a way to settle funds through Dolomite.
Summary
The future of stablecoins is not solely determined by popularity but depends on whether it can enter a structural capital cycle.
WLFI has brought USD1 to the forefront, but for it to truly stand firm, it requires someone to provide support and buffering.
@Dolomite 's emergence may be the key variable for USD1 to avoid becoming a 'short-lived hotspot.'
—— Coin Observation#Dolomite
