In the afternoon, browsing Binance Square, the hot list still has those few types of words:
US non-farm data exceeds expectations, Federal Reserve FOMC meeting, ETH trend analysis, cryptocurrency market observation…
On one side is macro data, and on the other side is the K-line perspective. Some say the non-farm data is too strong, and the Federal Reserve dares not to lower interest rates quickly; others interpret it differently, saying the structure is average, and the economy will inevitably soft land sooner or later. On the ETH side, the technical analysts draw lines, and the on-chain analysts observe the flow, with the same conclusion—'First wait for the FOMC.'
You look at these discussions, and your hands can't stay still:
Open an account, check the margin, look at the recent ETH lines, and take another look at the contract gains and losses.
Until you scroll to the bottom, seeing that column of numbers:
A large amount of USDT, USDC, quietly lying there, completely unrelated to these buzzwords.
At that moment, you will realize something a bit awkward:
In this round of market, everyone is talking about 'how non-farm goes', 'how FOMC goes', 'how ETH goes next',
Very few people really think—
What about that large pile of stablecoins lying there for a long time, what are they planning to do?
I started to seriously look at USDD at a time when 'everyone is focused on macro'.
First, tear off the label: USDD has indeed walked the old path of algorithmic stablecoins, but what you see now is USDD 2.0 after redoing—an over-collateralized, fully on-chain, contract-level unmodifiable and unfrozen stablecoin.
It has done several 'anti-narrative' things:
Mortgaged assets, contract addresses, treasury, and PSM are all displayed on the public page.
If you want to DD, go to the block explorer yourself.The protocol security audit was entrusted to several professional institutions.
The results are public, and even institutional funds can use these materials to write risk control reports.The most sensitive point is written into the contract:
USDD cannot be casually modified, nor can it be unilaterally frozen by a centralized entity.
In an era where regulation is increasingly concerned with 'who can press the freeze button', this matter may not please everyone, but for those who care about asset sovereignty, it is at least very clear—rules are rules, and USDD bears its own consequences.
The layer of stability is more crucial in the current environment where 'non-farm and FOMC are pulling interest rate expectations back and forth'.
The USDDOLD era still contained algorithms, while USDD 2.0 directly removed that 'algorithm' part, replacing it with a more grounded combination: over-collateralization + PSM.
Over-collateralization lets you know: behind every USDD, how much real assets support it;
PSM (Peg Stability Module) provides a nearly 1:1 exchange channel between USDD and USDT/USDC,
with large amounts not having much slippage.
When emotions pull the secondary price of USDD away from the peg, arbitrageurs will naturally come in—
Exchanging in and out of PSM, while eating up the price difference, pulls the price closer to 1 dollar.
After USDD 2.0 goes live, the price will hover around 0.999 for a long time;
This does not indicate 'no risk forever',
but at least indicates one point: it hands over the matter of 'stability' to the mechanism, not to words.
If the story ends here, USDD is at most 'another relatively stable candidate for stablecoins'.
What really made me willing to write a few more lines in this 'non-farm/FOMC one interpretation a day' environment is what it will do next—turning the stablecoin itself into an observable cash flow.
The early USDDOLD relied heavily on subsidies, similar to many CeFi high-annualized models you've seen:
Money comes from outside, looks good in prosperous times, and cools down when subsidies recede.
USDD 2.0's Smart Allocator has changed its approach:
Simply set up an 'on-chain asset management department' within the system.
It allocates the available assets in the system to various lending protocols, liquidity pools, RWA, and other scenarios across multiple chains;
All strategy positions are written on-chain, and you can see the positions and historical performance on the official page;
The currently disclosed number is: Smart Allocator has already earned back a profit of around seven million dollars for the protocol.
This number is not some 'expected APY',
but rather the string of accounts that remain in the system after surges and crashes, observing the crypto market.
Next is the layer that ordinary users can touch—sUSDD.
When you collateralize USDD to mint sUSDD,
you are actually connecting this part of stablecoin position to the pipe behind Smart Allocator:
USDD 2.0 is responsible for maintaining the peg;
Smart Allocator is responsible for working across various chains;
The result of the work is distributed to you through sUSDD according to the rules.
What you now see on the earn page is approximately 12% benchmark APY,
Not something conjured out of thin air, but the result of this entire structure running at its current stage.
It will change, the market and strategy determine it;
But this time you can find out 'why this is the number', rather than just seeing a shiny annualized figure.
If you throw all of this back into the context of the Binance hot list, the problem becomes very simple:
When everyone is arguing about 'when will interest rates drop' under the unexpectedly good US non-farm data,
in the Federal Reserve FOMC meeting, desperately guessing the dot plot,
when analyzing ETH trends, drawing lines, looking at funding rates, and chasing whale addresses,
You can completely open the asset page alone,
only focusing on the most inconspicuous line of stablecoins, asking yourself:
'Outside this grand chorus about interest rate expectations and market direction,
am I willing to take out part of my stable position to let it enter USDD'stransparent, verifiable on-chain cash flow?'
You do not need to All in USDD, and you should not All in USDD.
A more reasonable way to play might be like this:
The portion of stablecoins that you may need to all-in at any time should remain in USDT/USDC, still treated as bullets;
The portion that is not planned to all-in back to the market immediately,
can be cut and exchanged for USDD, acting as a 'decentralized stable position';Of which a part can again be collateralized to form sUSDD,
becoming that 'mindset line' for you in this cycle: no matter how wild the market is,
at least a small portion of the position is moving forward along a visible interest rate curve.
If you find on-chain operations troublesome,
Binance Wallet Yield+ now already has strategies related to USDD/sUSDD,
The path is USDT→USDD→sUSDD, one-click packaging.
Activity rules, APY, how rewards are distributed, everything is clearly written on the page,
All you need to do is: understand the rules, think clearly about what you can bear, and then decide whether to participate and how much to participate.
This article reaches here not to portray USDD as 'the holy grail in the macro noise',
I just want to make a few more points amidst the noise of 'non-farm, FOMC, ETH, longs, and shorts'.
Find a decent storyline for the stablecoin that has long been overlooked in that column.
The core of the USDD 2.0 line is actually two sentences:
Rules, collateral, and positions, you can check them yourself;
Where the cash flow comes from does not need to rely on anyone telling you on TV.
The rest is your own choice.
The above content represents personal research perspective and does not constitute any investment, financial, or legal advice, nor does it constitute any profit commitment or platform endorsement. For the mechanisms involving USDD / sUSDD, reference APY, and product information, please refer to the latest public disclosures and on-chain data from the project official and various platforms; before participating, please consider your own circumstances and risk tolerance, and make independent decisions.@USDD - Decentralized USD #USDD以稳见信
