Once the stablecoin market experiences another major earthquake, can new stablecoins like USDD survive? I'm not asking this to hype it up, but to have a clear logic in mind when it’s truly time to make a judgment.

Honestly, USDD has never been the type of "worry-free" stablecoin. Quite the opposite — its underlying design never intended to bet on the market remaining peaceful. Most stablecoins make this mistake: they assume exchanges won't collapse, markets won't go haywire, and users won't withdraw funds en masse. When a black swan event actually occurs, they resort to temporary rule changes, freezing accounts, shutting down withdrawals, and various stopgap measures. It seems to stabilize the price in the short term, but what about the long term? Once trust is broken, it can never be fully restored. You never know what the rules will be next time.

USDDv2.0 took a different approach, not relying on "firefighting after the fact," but instead embedding the worst-case scenarios directly into the code.

One is the over-collateralization line of defense. Don’t rely solely on everyone believing it’s worth one dollar to maintain the peg. What’s truly reliable is the real assets backing it, serving as a buffer. No matter how fierce the market fluctuations, the system won’t collapse entirely because there’s enough safety margin to absorb shocks. What’s the key? These collateral assets aren’t just hype in the whitepaper — they are transparent and verifiable on-chain. You can check them out anytime; risks are laid bare in the sunlight, with no dark boxes. This in itself is the greatest security.

Another is the liquidation mechanism. When it comes to liquidations, many people get nervous — but actually, that’s a good thing. It’s a sign that the system is protecting itself.