Last time we talked about Sun Yuchen and his stablecoin ecosystem, some friends asked me where the USD1 stablecoin route of the Trump family is?

Firstly, the backing of USD1 is the US dollar and US Treasury bonds, so the natural route is the compliant stablecoin system in the United States. What USD1 should aim for is not a savings-type stablecoin, but rather a stablecoin primarily for payments and transactions.

And the strongest competitors in this field are USDT and USDC, so for the newly entered USD1 to directly compete with USDT and USDC would definitely be the most foolish approach. USDT is somewhat acceptable since it has not yet achieved compliance in the United States, while the users of USDC and USD1 overlap significantly. The most direct solution for USD1 is to use subsidies to exchange for scenarios, and then use those scenarios to create network effects.

Recently, the series of actions from USD1 has been very apparent. Firstly, they provided a large amount of yield subsidies, and then tried to keep the exchange rate of USD1 in line with USDC to ensure the stability of 1 US dollar. This plan can maximize the seizure of the compliant market of USDC.

It supports the same trading as USDC, but with higher subsidies than USDC, and even does not require staking; just holding it gives interest (this is the same as USDC on Coinbase). Moreover, USDC is tied to Coinbase, while USD1 hopes to be tied to Binance. Under the conditions of supporting regular cryptocurrency trading, it also supports trading PAXG (gold) to broaden users' trading horizons.

So in terms of approach, USD1's method is more like "subsidy sedimentation," allowing users to exchange USDT and lock it in, while USD1's method is more like "subsidy liquidity and transactions," allowing users to exchange USDC and USDT for USD1 in the exchange to use as settlement base.