#大户持仓动态 【The Underlying Logic of Stablecoins: How USDD Supports Bitcoin Ecosystem DeFi Development】

As more capital flows into Bitcoin Layer2 networks, DeFi applications begin to explode, and a key question emerges: where is the credit foundation of counterparties?

The emergence of USDD essentially answers this question. It is not just a stablecoin but more like the infrastructure of the ecosystem.

**Why is it needed? Three perspectives**

First, look at the collateralization ratio. Over-collateralization >130% means that each USDD is backed by $1.3 worth of on-chain assets. This transparent and verifiable mechanism allows users to audit its reserves at any time. It is comparable to the traditional financial "reserve system," but with increased speed and transparency.

Second, price stability. Through an intelligent anchoring mechanism, USDD always maintains a trading price close to $1. This is crucial for DeFi trading pairs—whether on DEXs like Uniswap or others, smaller price fluctuations mean clearer arbitrage opportunities and a more efficient market.

Third, ecosystem integration. As a native asset of Layer2, USDD has been deeply integrated into Bitcoin’s second-layer network. This means users do not need cross-chain bridges and can use it directly within the ecosystem, reducing operational barriers and risks.

**What can the yield mechanism change?**

Traditional stablecoins are static, but USDD’s introduced yield-generating capability changes this. Holders can earn certain returns, which not only enhances the asset’s attractiveness but also strengthens stability—because the yield feedback mechanism continuously attracts liquidity.

**Thoughts on two questions**

At this stage, USDD’s primary task may not be "paving deep channels for institutional whales," but rather "building a secure infrastructure for ordinary participants." The reason is simple: the health of the ecosystem depends on the stability of the foundational layer. Only when the underlying layer is sufficiently reliable will leading institutions dare to enter. Conversely, institutional participation will increase demand for USDD’s liquidity and stability, creating a positive feedback loop.

The imagination space for Bitcoin DeFi has just begun to open, and the role of stablecoins will become increasingly critical.