At three in the morning, the moment ETH broke below 3000, my phone vibrated crazily—liquidation warning. As my finger trembled over the stop-loss button, I suddenly remembered the neglected stablecoin USDD in my wallet.
I am Old Chen, a veteran in the crypto world for five years. Everyone saw last night's market, ETH was going down all the way, and the MACD on the 4-hour chart was firmly pressed below the zero axis. The long positions I held were built in batches starting from 3150, and at that time, I was still full of confidence that 3100 was the iron bottom.
Reality gave me a loud slap in the face.
When the price broke through 2980, although my position's leverage was only 3 times, my unrealized loss had already exceeded 50%. The mobile app kept popping up margin call notifications, and those red numbers were particularly glaring in the dark room.
Just as I was about to hit the close position button, my gaze swept to the asset column of @usddio. That was a part of the USDD I exchanged out of curiosity half a month ago, when I was only interested in its advertised 'over-collateralization' and 'real-time auditing' features.
A flash of inspiration in despair.
I suddenly realized a problem: if I cut my losses now, the loss would really become a foregone conclusion. But what if I can endure this wave of decline?
After a quick calculation, I made two decisions:
Transfer part of the USDD to the trading account as additional margin.
Place a limit buy order near 2980 with the remaining USDD.
Why choose USDD? Because in times of severe market fluctuations, what I need is not a stablecoin that might de-peg, but a truly 'stable' asset. The public real-time reserve data from @usddio gave me this confidence - I know what is behind it and what the collateral ratio is, and this transparency is a soothing balm in moments of panic.
The risk control wisdom that USDD taught me.
This thrilling experience made me fully understand the weight of the phrase #USDD稳见信:
1. During market crashes, the 'stability' of stablecoins is true skill.
Many people only care about which stablecoin has high yields during the bull market, but forget that when liquidity is most needed, those stablecoins with transparent collateral and sufficient reserves are the lifeline. The 24-hour real-time audit page of USDD became my most frequently refreshed interface that night.
2. Over-collateralization is not a gimmick, it is real insurance.
@usddio maintains an over-collateralization rate of over 130%, which means that even in extreme market fluctuations, there is enough buffer space. This is unlike some algorithmic stablecoins, which could fall into a death spiral with just one black swan.
3. The importance of building a 'safety net' in DeFi.
After experiencing this event, I adjusted my asset allocation:
Keep at least 30% USDD in trading margin.
All mining liquidity pools use USDD pairs.
Long-term held stablecoin assets are gradually tilted towards projects with excessive transparency.
The market will continue, but I am no longer panicking.
This morning when ETH rebounded to 3030, I not only broke even but also acquired lower-priced chips with my order at 2980. But more important than profit is that I found a method to cope with extreme market conditions:
When the market is being washed again, I will now:
Immediately check the transparency of stablecoin reserves (the real-time audit link must be clickable).
Prioritize using stablecoins with sufficient over-collateralization to supplement margin.
Use volatility to place USDD orders at key positions.
Last night many people in the group were lamenting that they sold at the lowest point, while I, thanks to the part of my USDD reserves from @usddio, not only weathered the storm but also seized the rebound. This made me deeply understand: in the crypto world, the choice of risk management tools is sometimes more important than the trading strategy itself.
Now the proportion of USDD in my wallet has reached 20%. Not because its APR is the highest, but because I know - when I am suddenly awakened by my phone vibrating in the middle of the night, this little green icon won't make my palms sweat.
In this market where volatility has become the norm, finding an asset that can truly provide 'stability and trust' might be the best safeguard for ordinary investors. After all, living longer allows you to laugh last.