The interest rate hike hit like a lightning strike, and only one asset remains bright—USDD
1/ Lightning recap
The Bank of Japan's surprise interest rate hike led to an instant collapse of global yen carry trades;
USD, US bonds, and BTC all plunge simultaneously, with $12 billion liquidated within 24 hours;
Traditional stablecoin issuers are holding losses on Japanese government bonds, on-chain minting fees have surged—only USDD, with zero exposure to Japanese government bonds and over-collateralization on-chain, has become the only 'immunity zone' against yen interest rate hikes.
2/ Why USDD shines instead
Zero exposure to government bonds
Fiat-backed stablecoins are piled high with various national bonds, and interest rate hikes equal paper losses plus rising minting costs; USDD relies on over-collateralization with TRX, BTC, and ETH, and the skyrocketing yields of Japanese government bonds are unrelated to it.Short covering fuel
Leveraged shorts need 'cheap dollars' to bottom-fish; USDD on-chain minting fees are fixed, arbitrageurs rush to mint coins, supply increased by 9% in two days, moving liquidity into the on-chain 'underground vault' in advance.High volatility = high arbitrage
The sharp drop temporarily decoupled USDD to 0.994, triggering '1 dollar discount protection'—the redemption channel automatically opened, arbitrageurs bought and redeemed collateral assets, annualized returns instantly shot up to 18%, prices returned to the peg within two hours, arbitrageurs picked up bullets for free, and market confidence warmed up simultaneously.
3/ Next step script (personal brainstorming, not financial advice)
A. The 'aftershock of interest rate hikes' will continue, treating USDD as the 'on-chain dollar pool'. When BTC rebounds by more than 5%, switch positions with one click, faster than fiat currency for deposits and withdrawals, and the market won't close on weekends.
B. In JustLend circular arbitrage: deposit USDD → borrow TRX → stake TRX → deposit USDD again, three layers of leverage to capture interest rate differentials; rising Japanese bond yields will suppress TRX borrowing demand, widening the interest spread instead.
C. Pay attention to the upcoming 'USDD-JPY hedge pool' from protocols like YGG and Sun.io, using the interest rate hike theme for LP, betting that liquidity will continue to overflow from the fiat world to on-chain native assets.
4/ Conclusion
When global central banks tighten the taps again, there is no 'safe haven', only 'who hasn't stepped on a landmine' corners of safety.
In the Japanese bond minefield, USDD is the only corner labeled 'on-chain native, zero Japanese bonds, instant burn'—the next lightning strike may turn this corner into a hotspot.
Move the ammunition into the on-chain vault in advance, so when the next thunder strikes, what you hold is already a 'get out of jail free card', not a hot potato.
