In recent weeks, US inflation data has consistently exceeded expectations, and market sentiment has become noticeably tense. Whenever economic data worsens, investors' first reaction is to sell risk assets—highly volatile assets like Bitcoin and Ethereum are hit first, and the fear index on exchanges surges accordingly.

But this moment also exposes a problem: when traditional finance and crypto markets decline simultaneously, many realize what truly constitutes a safe haven asset. Holding cash alone depreciates in a high-inflation environment, while aggressive risk investments are easily trapped during market crashes. What is needed is a solution that can both preserve value and remain flexible and liquid.

This is precisely the difference reflected in various stablecoin mechanisms. The stablecoins on the market mainly fall into two categories: one relies on centralized institutions' credit and reserve commitments (such as USDC, USDT), requiring investors to trust these institutions' financial health; the other uses a decentralized model with on-chain over-collateralization, with USDD belonging to this category.

The advantage of USDN lies in its fully transparent operational logic. All collateral assets are locked in smart contracts, and any holder can verify on-chain data in real-time to check collateral ratios and asset reserves, without relying on periodic audits or disclosures from institutions. During market panic, this transparency actually becomes a guarantee of stability—you can see the assets right there with your own eyes.

From another perspective, when inflationary pressures persist, different approaches lead to completely different outcomes. Some choose to liquidate to cash and wait (but must endure inflation erosion), others continue to leverage for rebounds (with high risk). A smarter approach is to shift part of the funds into more stable tokens to pass through this phase. Among these options, verifiable mechanisms and transparent stablecoins are clearly more trustworthy.

Market volatility is normal; the key is how to respond to it.